In the last 24 hours, crypto traders have experienced a loss of more than $1 billion in their trading positions, as Solana’s value has dropped by over 20% before bouncing back to around $129.
The decrease in value is ascribed to investor apprehensions regarding a potential economic downturn in the United States, the monetary policies of the Federal Reserve, and geopolitical conflicts.
Amidst a decline in crypto prices on Monday, the overall market capitalization decreased by 17% and dropped below $1.9 trillion. Consequently, numerous traders saw significant liquidations.
According to Coinbase data, the overall amount of liquidations surged by over 400% to almost $1.1 billion. These liquidations primarily involved long holdings, with leveraged positions accounting for over $962 million.
These leveraged positions were based on optimistic speculations about crypto prices. Within a span of 24 hours, the number of crypto traders who were forced to sell off their assets due to financial difficulties surged to over 301,700.
The largest individual liquidation order amounted to a staggering $27 million worth of Bitcoin (BTC). The value of USD has been eliminated on the Huobi platform. The amount of short liquidations in the past 24 hours was relatively low, totaling $174 million. Out of this, $64 million were bearish bets on BTC, and $50 million were bearish bets on Ethereum.
