Cryptocurrency market suffers biggest sell-off in a month

The cryptocurrency market suffered the largest liquidation of positions in the derivatives market in a month, due to the latest collapse in the price of bitcoin (BTC) and other major cryptocurrencies.

Within 24 hours, more than $80 million was liquidated by leveraged traders betting on the rise of various cryptocurrencies and exchanges. This is reflected in the data of CoinGlassAccording to which this period saw the largest market losses since November 20 last year.. At least for the bulls.

Last December 12, the bearish lost more than $100 million when the BTC broke above $18,000. Now, Bulls lost on the cryptocurrency’s fall. at $17,000, which dragged down the rest of the market.

Liquidations are losses realized by traders who place leveraged positions in the derivatives markets of stock exchanges. In these markets, the house liquidates positions when the price moves too far away from the level of the trader’s position. This means that. the fall generated unanticipated liquidations by those who were betting on the market rising..

Although BTC is the driving force in the cryptocurrency market, with its behavior generally replicated by major assets, most of the losses these 24 hours correspond to those who expected the cryptocurrency to rise from Ethereumether (ETH).

Total, losses from bullish positions for ETH reach $35 million. This is almost double the losses generated for traders by the negative movement of BTC: about $19 million.

The largest loss recorded in the past three months occurred on November 7, when the collapse of the FTX exchange dragged the market downward with a vengeance. On that occasion, the bulls lost nearly $550 million during the day and another $342 million the next day.