Long Bitcoin traders bear the brunt as sell-offs continue
Bitcoin liquidations continued at the end of the year. The year has been rocked by liquidations that have passed the $ 100 billion mark and there does not appear to be any stopping even as 2022 approaches. Long traders have had to bear the brunt of the losses given the recent downtrend. While bitcoin looks set to end the year below $ 50,000, these losses will continue for much of the year.
Bitcoin liquidations continue
The 12- and 24-hour scale data on Coinglass shows that bitcoin liquidations haven’t really slowed down. That number has climbed over the past 12 hours at the time of writing and topped $ 31 million in the same time frame. For the 24 hour volume, the number is much higher at $ 46 million but shows more losses in the last 2 hours than throughout the day.
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This follows the general trend of 2021 which saw long traders suffer tremendously in the market. While there was certainly money to be made for these long traders due to the various bullish rallies the market experienced, the crashes were swift and brutal, resulting in quick sell-offs that reached billions of dollars.
BTC trading at $47K | Source: BTCUSD on TradingView.com
Bitcoin short traders have performed well with the downtrend as bears continue to push the price of BTC down. The majority of recorded liquidations for digital assets have been for long-time traders. The highest volume comes from the Binance crypto exchange which hosts the majority of traders in the market considering its trading volume.
Ethereum Exchanges Are Not Left Behind
Bitcoin traders are not the only ones feeling the effects of the ongoing market liquidations. Ethereum traders also carry a significant portion of the weight with this. The digital asset has also seen traders get reimbursed over 12- and 24-hour periods, with liquidations reaching tens of millions.
Like bitcoin, 12-hour liquidations had more of an impact than their 24-hour counterparts. Ethereum liquidations over the past 12 hours have totaled over $ 21 million. On the 24-hour scale, there has been a total of $ 38 million in liquidations pending.
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Long traders see the majority of losses again. As the price of ETH, moving in tandem with that of bitcoin, has continued to decline, these long traders see their positions liquidated and suffer heavy losses. Moreover, Binance is also the exchange recording most of the liquidations for this purpose.
LUNA traders are also feeling some of the heat with more than $ 2 million liquidated in the past 24 hours. If the market continues its current trend, traders may only see the start of a long period of sell-offs.
Featured image from Time.com, chart from TradingView.com