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- 1 Liquidation gets around $170 Million, with a slight drop in the entire market.
- 2 Ethereum Shapella Upgrade could not pull the desired rally. .
For the last 24 hours, a noticeable decline in the crypto market, causing $169M liquidation for traders. Recent analysis reveals around 46,931 traders were liquidated, and the majority happened at OKX worth around $3.04 Million. Total crypto liquidation losses accounted for 59% in short and long positions.
Slight Drop in The Crypto Market And its Effects
Bitcoin (BTC) was trading at $30,336.84 with a drop of 0.29% at the publication time. Its market cap fell by 0.28% to $586 Billion, & trading volume suffered by 42.54% to $11.3 Billion. Still ranking at number 1, it enjoys a market dominance of 46.12%. This recent price drop sparked a liquidation of around $80 million.
After Ethereum Shapella Upgrade, ETH was up by around 7.19%, but now it is trading at $2,097.79 with a slight increase of 0.34%; value against Bitcoin gained 0.67% to 0.06918BTC, which was up by around 5.19% post upgrade. Its market cap slightly gained 0.02% to $251 Billion, but trading volume dropped by 42.63% to $7.45 Billion. Due to this pace, Ethereum traders lost $23.33 Million.
Arbitrum (ARB), in comparison, was trading at $1.64 with a drop of 1.35%, value against Bitcoin dropped by 1.07% to 0.00005385BTC, market cap suffered by 1.21% to $2.08 Billion, and trading volume fell by 42.97% to $1.4 Billion. The decline led to a loss of around $8.3 Million. A similar trend continued in Dogecoin (DOGE), Solana (SOL), and Litecoin (LTC)
Major exchanges like Bitfinex, OKX, and ByBit, apparently contributed to about 90% of these crypto liquidations. Detailed studies reveal that most traders in Bitfinex held short positions while they held long positions in other exchanges. Ironically, despite the traders experiencing liquidations, respective assets are still trading reasonably well.
2023, A Relatively Good Year For Crypto So Far
After a harsh crypto winter and multiple bankruptcies, FTX collapse, and more last year, many believe it was among the worst years the market has witnessed. With crypto companies facing numerous hacks almost every month in 2022, a constant price decline and a considerable loss in trading volume caused the overall market losses to reach around $1.8 Trillion.
However, from day one of trading in 2023, the crypto market traded well, with Bitcoin gaining around 84% and Ethereum gaining almost 75%. Such gains rendered the environment positive, indicating a regained users’ trust lost during 2022.
Even though the market seems to be recovering from a steep decline, the regulators are still throwing punches. A consecutive fall of major crypto-friendly banks, like Silvergate and Silicon Valley Bank, caused a dent in the industry’s workings. SEC issued Wells Notice to Coinbase regarding the sale of unregistered securities, while the infamous case of SEC vs. Ripple has been going on since December 2020, and the verdict might come out this year.
U.S. Presidential candidate openly advocated Bitcoin as a tool that could save us from economic uncertainties and spoke against the proposed Federal CBDC, FedNow, and how it could challenge citizens’ financial freedom. Senator Elizabeth Warren tried running the anti-crypto army for her re-election campaign.
Keeping a bird’s eye view, crypto is recovering from a bad phase, and lawmakers would have to work closely to develop regulatory standards that benefit everyone.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
