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Bitcoin (BTC) traders have experienced a tough week as the cryptocurrency dipped below $30,000, causing panic among traders who shorted Bitcoin in the hope of the asset’s price moving upwards.
According to data provider Coinglass, many traders are counting their losses, and a record of approximately 87,977 traders have liquidated over the past 24 hours, totaling $291 million and counting.
Total Liquidations Approach $300 Million
Binance recorded the largest amount of liquidations, at $49.9 million, among all the tracked crypto exchanges involved in the liquidations. Other crypto exchanges in the market had a smaller trader volume, making the lack of surprise understandable.
The data reveals that longs liquidated in the last 24 hours amounted to approximately $262 million (89.9%) of the total liquidations.
Short liquidations also occurred in the same period, accounting for almost 10% of the total liquidations in the past 24 hours, with $25.6 million in long liquidations.
Despite the bearish trend in the market, one trader executed the largest single liquidation in the period, an LTCUSD swap valued at $3.92 million, on Binance.
Bitcoin Slumps Below $30,000
The global crypto market cap has also slumped below the $1.3 trillion mark with a value of $1.256 trillion at the time of writing, down by nearly 5% in the last 24 hours.
Bitcoin has lost more than $20 billion to its market cap in the past week, down by nearly 4%, indicating selling pressure. Though the top crypto saw a slight uptrend on Tuesday that pushed its price to still trade as high as $30,359, the asset has seen a bearish trend since then.
However, the cryptocurrency market is not all doom and gloom as some traders have managed to turn a profit by trading other cryptocurrencies. The current bearish trend has highlighted the importance of diversification for traders who want to minimize losses.
It is worth noting that traders who shorted Bitcoin in the hope of the asset’s price moving upwards are experiencing significant losses as the cryptocurrency market slumps. However, as the crypto market continues to experience volatility, it’s important to note that losses in trading are not uncommon.
Additionally, it’s important to keep a level head and not panic when faced with losses. The market is constantly fluctuating and traders should have a long-term outlook rather than focusing on short-term gains.
Despite the current market being challenging for some traders, the crypto space continues to evolve. Yesterday, a proposal to make PancakeSwap (CAKE) scarce to prevent the token from collapsing was submitted.
The latest proposal for CAKE involves implementing an annual inflation rate of 3% and 5% to transition towards a more sustainable staking model. The main objective is to ensure low staking inflation for CAKE, with the real yield coming from PancakeSwap’s revenue. The proposed structure aims to provide incentives for long-term CAKE staking.
Featured image from iStock, Chart from TradingView