Crypto Liquidations Reach $1 Billion As Sentiment Falls To 10-Month Lows
10 Maio 2022 - 2:00PM
NEWSBTC
The crypto market has been subject to large liquidation following
the price crash. Coming out of the weekend, the market had recorded
one of its worst crashes which saw bitcoin fall below the $30,000
territory for the first time this year. With this had come hundreds
of millions in short liquidations. However, the bloodbath seems far
from over as the market continues to crumble and liquidations have
now run over the $1 billion mark. Crypto Traders Getting Rekt After
the crash that rocked the market coming out of the weekend, crypto
traders had taken a hard hit. However, like always, this is always
skewed to one demographic, and long traders had taken the hit with
77.5% of longs making up the majority of the $421 million
liquidation figure that had been recorded on Monday. Related
Reading | Bitcoin Price Hits Three-Month Low, What’s Driving
This? With Tuesday now on the horizon has come even more challenges
for traders in the space. While most speculated that bitcoin would
not fall to $30,000, it had done just that and even fell briefly to
the $29,000 territory before recovering once more. The damage would
be done though as more traders would see their positions liquidated
in the market. This number has now gone above $1 billion liquidated
in the past 24 hours with Bitcoin and Ethereum traders bearing the
brunt of it. Once again, long positions continue to dominate the
liquidations as bitcoin struggles to find its footing and recover.
The numbers are slightly better in favor of long traders falling
from 77.5% on Monday to 71.8% on Tuesday. Crypto liquidations
surpass $1 billion | Source: Coinglass The total amount of
liquidations sits at $1.10 billion at the time of this writing.
Longs account for $789.27 million and shorts came out to a total of
$310.04 million. Bitcoin and Ethereum continue to rival one another
with $354.77 million and $326.51 million in liquidations
respectively. Market Sentiment Dives To Hell Along with the crypto
market crash has been the dip in market sentiment. This really is
no surprise as sentiment has been moving consistently into the
negative for the past couple of weeks. However, the market crash
has accelerated this movement. The Crypto Fear & Greed Index
now has a reading of 10. This is one of the lowest that the index
has ever been in the past year. With the number so low, it puts the
market in the extreme fear territory. This means that investors are
warier than ever to put money into the market, with some opting to
liquidate their holdings in order to avoid more losses. Related
Reading | Ethereum Miners Surpass Bitcoin Miner Revenue By
$224M One thing to note though is that low sentiment can also be a
prelude to a bull rally. The last time the index was this low was
in July 2021. What followed was a recovery that eventually served
as the lift-off point for bitcoin hitting its all-time high of
$69,000. If history repeats itself, then this may very well be
another start to a massive bull rally. That is if the bottom of the
current crash has been achieved. Crypto market loses over $1
trillion | Source: Crypto Total Market Cap on TradingView.com
Featured image from ITPro Today, chart from TradingView.com
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