Cryptocurrency Derivative Liquidations Top $1.9B Amid Thanksgiving Day Slump

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In Brief
  • Over $1.93 billion in crypto longs were liquidated as prices slumped.

  • Bitcoin price dips 11%.

  • Crypto market cap sheds $70 billion.

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Optimistic long bets on crypto derivatives have once again come at a considerable cost to traders following a $1.93 billion wipeout over the past 24 hours.

The total crypto market cap is down over $70 billion amid a massive slump in prices of nearly all virtual assets with Bitcoin (BTC) retreating below the $17,000 mark.

Overleveraged Cryptocurrency Long Positions

According to the crypto data aggregator bybt, total crypto derivative liquidations across exchange platforms over the past 24 hours is over $1.93 billion.

Many traders were likely caught up in the bullish euphoria and entering over-leveraged long positions.

$1.93 billion Crypto liquidation bloodbath
Crypto liquidations chart by bybt.com

Binance reportedly recorded $866 million in liquidations which amounts to almost 45% of the total sum. Over 94% of the liquidations on Binance were from long positions as cryptocurrency prices tanked on Thanksgiving day.

Open interest (OI) on Binance is down over 20% as well as on other derivative platforms like FTX and Bybit. This OI decline provides further evidence of an increase in over-leveraged longs on exchanges before Thursday’s price drop.

Perhaps indicative of the BitMEX decline in recent times, only $145 million (7.54%) of the total liquidations happened on the platform. In the past, BitMEX used to be the pantomime villain as far as crypto liquidations were concerned.

Of the $1.93 billion liquidation total, about $1.04 billion were from Bitcoin derivatives that saw traders lose over 62,000 BTC in the process. Ethereum (ETH) derivatives own the largest share of altcoin liquidations with a wipeout of about 770 ETH worth approximately $380 million.

Cryptocurrency Adoption

Market Cap Down 15%

At the time of press, the total crypto market capitalization is down by over 15%. The cryptocurrency market value has lost about $70 billion in the last 24 hours as Bitcoin and altcoins experienced significant corrections.

After flying to a two year high of $0.90, XRP is now down to the $0.50 price mark. ETH and Litecoin (LTC) also posted double-digit percentage drops in the last 24 hours with the broader altcoin market firmly in the red.

Disclaimer

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Osato is a reporter at BeInCrypto and Bitcoin believer based in Lagos, Nigeria. When not immersed in the daily happenings in the crypto scene, he can be found watching historical documentaries or trying to beat his Scrabble high score.

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