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In the wake of the Bybit hacking event, the downturn in the cryptocurrency market has escalated, with total liquidations soaring to $1.34 billion in the last 24 hours. While Bitcoin (BTC), Ethereum (ETH), and XRP spearheaded this selling spree, nearly all altcoins within the top 100 faced considerable price drops. Over 363,000 traders were impacted by liquidations, and leading cryptocurrencies are gearing up for a reset.
Cryptocurrency Liquidation Statistics
As per CoinGlass, Bitcoin’s liquidation figure over the past day reached $526.31 million, establishing it as the main catalyst for this sell-off. Long traders incurred the highest losses, amounting to $502.5 million, whereas short traders faced losses of $23.81 million. Although liquidations are typical in the market, this represents the largest incident this year.
Ethereum also experienced liquidations totaling $292.42 million, with long traders losing $27.01 million and short traders losing $22.29 million. XRP’s liquidation figure hit $56.77 million during the 24-hour timeframe, setting a new record. As anticipated, long traders encountered liquidations of $52.38 million, while short traders saw a decline of $4.39 million.
The market trend is similarly mirrored in other cryptocurrencies such as Solana (SOL), Dogecoin (DOGE), and Litecoin (LTC). Despite the pessimistic outlook, futures traders are still wagering on a price recovery happening soon. BlackRock Restarts Bitcoin (BTC) Purchases, Puts in $25 Million
Elements to Monitor for a Recovery
The pessimistic perspective of the market is not completely evident, as trade issues in North America are affecting the equity market. The ambiguity in the economy might persist in applying pressure on Bitcoin because of its relationship with conventional stocks.
However, Bitcoin continues to uphold a feeling of hope and acceptance among institutional backers. Michael Saylor’s strategic firm revealed on February 24 that it plans to allocate $2 billion into Bitcoin. This action has motivated numerous other Wall Street companies to pledge their commitment to adopting Bitcoin treasury strategies, expecting a price recovery.
