This past week was another indicator that we are still in a bear market. The latest Bitcoin crash brought the price to the four-month low in less than a day. With that, all unfortunate traders with long positions on BTC hopped onboard the liquidation train. Currently, Bitcoin is trading at $35,960 and is well below the key resistance level at $38,000. The 9.6% Bitcoin crash since Wednesday has liquidated hundreds of millions and the short-term outlook remains bearish in short-term.
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Last week, almost all markets across different sectors crashed mostly due to rate hikes by the Federal Reserve. Subsequently, tens of thousands of traders faced liquidations on their positions.
As for crypto, the analytics firm Coinglass has revealed that the market lost over $407 million in liquidations. This is only on May 5th when traders faced a strong Bitcoin crash in less than 24 hours.
For the most part, over $340 million belonged to long positions. However, those who got greedy and shorted the heck out of crypto also got burned. In total, the volatility took $67.3 million worth of short positions in the same day.
Bitcoin Crash
Naturally, Bitcoin (BTC) traders took the lead in the Bitcoin crash and endured the biggest share of losses in liquidations. According to Coinglass, more than 2,000 BTC worth $72.7 million was wiped out over 24 hours. Always the second, Ethereum (ETH) traders lost approximately $39,53 million.
On the other hand, a few up and coming altcoins who were in the middle of their fresh release rallies also took a hit. STEPN (GMT) which is for a fitness app and of course ApeCoin (APE) had their first crash. STEPN had $7.36 million and ApeCoin lost $5.27 million in liquidations.
Another analytics firm Santiment is also pointing out this Bitcoin crash as a large capitulation event. According to the firm, this crash has been one of the biggest capitulation events in the past year.
“Bitcoin is seeing its third-largest capitulation week in over a year, in terms of its ratio of on-chain transactions taken at a loss.
The last time BTC was this far negative for this metric was Feb. 16th-22nd, when prices jumped +20% the following 9 days.”
Furthermore, the firm also notes that Bitcoin had a massive amount of on-chain activity amid the latest plunge.
“After yesterday’s mid-sized correction, the dust is still settling across crypto markets. Bitcoin’s network had 1.17 million unique active addresses making transactions yesterday, which was the highest amount of utility since December 2nd, 2021.”
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