The world's largest cryptocurrency fell by over 8% to as low as $35,000. This is its weakest level since the beginning of the Russia-Ukraine war. The recent drop triggered the liquidation of over $160 million in positions hoping for Bitcoin to trade in the opposite direction.
The problem in the crypto market is growing in futures and options trading. Over $400 million worth of positions have been liquidated in the past 24 hours as crypto's recent decline caught many investors off guard. The crypto market has lost nearly $130 billion in market capitalization in the past 24 hours as concerns over the economic recession and rising interest rates weighed on.
Bitcoin (BTC) long positions are once again liquidated
Liquidation data from Coinglass shows that over 85% of all liquidations in the last 24 hours were long positions of $368 million. The long position of $164 million in Bitcoin (BTC) was liquidated. This amount marks the highest liquidation since a similar scenario in January. The data shows that traders expect the world's largest cryptocurrency to rise after a slight rebound on Thursday, a scenario that clearly doesn't happen.
Bitcoin (BTC) long positions are being liquidated continuously this year. Besides Bitcoin (BTC), top altcoins have also seen an increase in liquidations over the past 24 hours. Newcomers STEPN (GMT) and ApeCoin (APE), which outpaced the crypto market in April, have seen some of the biggest liquidations outside of Ethereum (ETH). Both GMT and APE saw approximately $12.5 million liquidated each, with about 78% of positions being long.
Top altcoin Ethereum (ETH) saw $69 million in positions liquidated, with a 92% long interest rate much higher than its peers. Investors expected Ethereum (ETH) to gain some support before moving to a widely anticipated proof-of-stake model.