The cryptocurrency market collapse wiped out more than $170 billion in one day, with massive outflows occurring on Tuesday. Furthermore, this led to the liquidation of over $1.5 billion in leveraged crypto assets. This decline comes in response to rising oil prices and geopolitical tensions resulting from the current conflict between the United States and Iran.
$1.5 Billion Liquidations Dominate Cryptocurrency Market Crash
Overall, $1.5 billion worth of cryptocurrencies were liquidated over the past 24 hours. Of that amount, approximately $1.35 billion was included by long-term investors, according to him Queen Glass Data.
In total, it appears to be $141.8 million Cryptocurrency liquidations have occurred Over the past 24 hours, the vast majority of that loss was accrued to long-term investors (about $135 million). The sales witnessed the liquidation of more than 224,500 traders.
Bitcoin-related liquidations amounted to about $805.8 million. This led to Bitcoin being the largest contributor to the cryptocurrency market crash as the price of BTC fell to the $66,000 level.
Ethereum’s liquidation amount has risen to approximately $323.5 million. Meanwhile, XRP liquidations rose to nearly $28.8 million, with long positions accounting for more than 95% of liquidated positions.
The massive liquidation event exacerbated the market decline because exchanges automatically closed leveraged trades that no longer had sufficient margin. This sell-off pushed down the prices of Bitcoin, Ethereum, XRP, and other cryptocurrencies.
The collapse of the cryptocurrency market also depressed investor sentiment. It has forced traders to reduce risk and reallocate funds to safer assets such as cash, gold and oil-related investments. major Cryptocurrency futures trading platforms Financing rates were also negative. This indicates continued bearish pressure in the short term.
Bitcoin, Ethereum and XRP prices collapse
Overall, the market took a hit as Bitcoin price fell to around $66,921. the Bitcoin price It saw a weekly loss of about 12% and a daily decline of 6.44%. Moreover, Ethereum price fell by approximately 5.38% to $1,894 during the day.
In addition, Ripple Inc XRP fell 6.43% to $1.21. Additionally, Solana fell 7.54% to $74.92, and Dogecoin fell 7.05% to $0.093.
This volatility is due to investors’ interest in the US-Iran war. This week, news came out Iran suspends talks With the United States while threatening to disrupt the Strait of Hormuz, a major global shipping lane for oil.
Brent crude prices rose sharply, as fears of supply disruptions and retaliatory strikes in the region led to this. On Tuesday, the price of oil reached $93.89 per barrel, up 1.88%, impacting crypto assets.
Furthermore, Bitcoin ETFs have seen massive outflows of $3.5 billion in the past 10 trading days. It made the recent cryptocurrency market crash even worse. In addition, Transferring $14 million worth of BTC from Tether It also raised selling concerns.
