This recent price drop has led to a massive wave of liquidations in the crypto derivatives market allowing speculation on the upside (Long position) or downside (Short position). More than 185,000 traders have seen their positions automatically closed since yesterday.
According to Coinglass data, these liquidations total nearly 759 million dollars in 24 hours. Unsurprisingly, it is the buyers who have suffered the most, with over 706 million in Long positions liquidated. Against less than 53 million dollars for Short positions.
In detail, it is mainly the bulls on Ethereum (ETH) who have been most caught off guard, with over 228 million dollars in Long positions on ether liquidated. The buying positions on Bitcoin follow, with 178 million dollars in liquidations.
If Bitcoin has ultimately returned to its prices from 7 days ago – with almost 0% variation over a week! – it is therefore significantly less cheerful on the altcoins side. Only Binance's BNB and its recent all-time price record and Tron’s TRX are managing to stay in the green over a sliding week. Will this decline set the tone for August, or will the market recover? In any case, one thing is certain, with the lowest liquidity during the summer period, movements (both up and down) are likely to be more violent in case of a shift.