Cryptocurrency liquidations surged dramatically as the global crypto market cap fell below $2.5 trillion. According to Coinglass data, total liquidations spiked by 92.5% in the last 24 hours, totaling $292.22 million. Long positions accounted for a significant $259.7 million, constituting about 89% of the total, while the remaining $32.5 million was from short positions.
Ethereum (ETH) led in liquidations with $101.6 million, split into $97.5 million from longs and $4.1 million from shorts. Bitcoin (BTC) followed closely with $83.3 million liquidated, comprising $71.5 million from longs and $11.7 million from shorts.
The largest single liquidation, amounting to $11.78 million in the BTC/USDT pair, occurred on Binance, the world’s largest crypto exchange by trading volume.
CoinGecko reported that these liquidations coincided with a 3.6% drop in the global crypto market cap over the past day, sliding from $2.5 trillion to $2.42 trillion. The market cap briefly hit a peak of $2.55 trillion at 15:00 UTC on July 24.
Bitcoin saw a high of $67,110 on July 24 before dipping to around $64,100. Ethereum experienced one of the largest declines among major cryptos, dropping by 8.1% to trade at $3,160 currently. This decline in ETH followed significant net outflows of $133.3 million from spot ETH ETFs in the U.S. on July 24, only their second day of trading.
In the wake of increased liquidations, total open interest in the crypto market fell by 4%, settling around $63.6 billion, according to Coinglass. Market participants anticipate reduced volatility as liquidation pressures ease.
For further insights, a U.S. Senator plans to introduce legislation for a Strategic Bitcoin Reserve at Bitcoin 2024.