The cryptocurrency market has experienced a major correction, with $1.76 billion in positions liquidated within 24 hours. This marks one of the largest liquidation events of the year. The market downturn has affected assets across the board, with Bitcoin retreating to $96,814.09 at press time, representing a 3% decline.
The liquidation event has particularly impacted leveraged traders, with long positions suffering the majority of the losses. Of the total liquidations, $1.58 billion came from long positions, while short positions accounted for $184 million.
Small-cap cryptocurrencies have been hit hardest, with $563 million liquidated in 24 hours. The disparity between long positions ($537 million) and short positions ($25 million) in this segment reveals the extent of positioning in smaller altcoins.
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Ethereum, trading at $3,696.94 at press time with a 6.5% decline, has seen $249 million in liquidations. The liquidation is split between $223 million in longs and $26 million in shorts. Bitcoin traders faced $189 million in liquidations, with $147 million in longs and $41 million in shorts wiped out.
Major exchanges have processed substantial liquidation volumes, with Binance leading at $755 million. It is followed by OKX with $452 million and Bybit with $379 million. The market’s total capitalization has slumped by 5.2% to $3.45 trillion, while trading volume surged 111% to $348 billion, reflecting a rise in market activity.
The current market structure shows varying impacts across different cryptocurrencies. XRP has experienced a sharp 12.24% decline to $2.1802, while Dogecoin has shown a 10.3% drop, trading at $0.4067. Solana (SOL) and Binance Coin (BNB) have also faced pressure, trading at $216.20 and $693.52, respectively, with declines of 7.01% and 4.48%.
Bitcoin’s market dominance stands at 55.78%, indicating its continued significance as the market leader despite the correction. The stablecoin sector, represented by USDT trading at $1.0005 with 4.03% market dominance, has maintained its peg. ETH stands at a dominance of 12.87% at press time, according to the data from CoinMarketCap’s crypto heatmap.
