Markets
Cryptocurrency is collapsing! The market loses 160 million dollars in 24 hours!
5.30pm ▪ 3 minute read ▪ by Eddy S.
The winds are changing again in the cryptocurrency markets. In just a few hours, major liquidation movements swept through the ecosystem, reaching the substantial sum of $160 million. Another reminder, if any were needed, of the unpredictable nature that continues to define this young and promising industry.
Cryptocurrencies: massive liquidations, a symptom of an unpredictable market
The data speaks clearly: in the space of 24 hours, more than 160 million dollars of open positions were canceled from the crypto market. Bitcoin alone saw almost 20 million dollars go up in smoke. But it is Ethereum which takes the crown of liquidations with an abysmal figure of 27.8 million dollars wiped out. An even more serious shock given that the price of ETH had recently reached new highs, favored by the approval of spot ETFs in the United States.
However, beyond the mastodons, this tidal wave did not spare any actor. Many smaller projects have been hit hard by these chaotic movements. Like Notcoin, whose nearly $6.2 million in positions were wiped out in record time. In short, the numbers speak clearly: volatility remains an important challenge for the entire crypto ecosystem, regardless of capitalization.
The controversial role of the main centralized platforms
While these recent market convulsions illustrate well the overall immaturity of the market, we must not obscure the central responsibility of the major cryptocurrency exchanges. Leading this intense quartet, Binance is at the epicenter of the latest wave of liquidations with $75.8 million in positions canceled in just 24 hours. An astronomical figure which alone represents almost half of the purges suffered on all cryptocurrencies.
Behind Binance, other heavyweights are equally affected by this speculative tidal wave. OKX leads the ranking with 53.9 million liquidations, followed by Bybit (14.2 million) and Huobi (11.3 million). Ultimately, these four major centralized exchanges concentrate the majority of the damage, single-handedly crystallizing the excessive risk exposure plaguing the cryptocurrency market.
Without a doubt, the recent turmoil has been an uncompromising reveal of the immaturity still evident in the cryptocurrency market. However, rather than sounding the death knell for an emerging technology, these disruptions call for continuing industry transformation toward greater maturity and stability. A titanic challenge, yes, but fundamental to guarantee the sustainability of the project digital resources as a real alternative to traditional financial systems.
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Eddy S.
The world has evolved and adaptation is the best weapon to survive in this wavering universe. The crypto community manager at the base interests me in everything that touches or comes close to the blockchain and its derivatives. With a view to sharing my experience and getting to know a domain that I am passionate about, I find myself writing informative and décontractés a la fois articles.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be relied upon as investment advice. Do your research before making any investment decisions.