Around 300,000 cryptocurrency traders have lost an estimated $1 billion in the last 24 hours following a significant market crash. Cryptocurrencies suffered significant losses on April 12, with altcoins dominating cryptocurrency liquidations more unusually than bitcoin (BTC).
Specifically, 297,536 derivatives positions reached the liquidation threshold, with total daily losses totaling $937 million. Finbold extracted this data from CoinGlass' liquidation heatmap on April 13.
The majority of these losses came from long positions, which had a total liquidation value of $824.45 million. Short positions accounted for 12% of the total losses, $112.56 million.
SafeMoon V2 quotes have grown by more than 150% over the month.
Interestingly, US$248.02 million of these liquidations came from "other" altcoins that are not in the top 50 most expensive #cryptocurrencies . This is an unusual result given that #bitcoin and #BTC (ETH) often dominate trading and clearing volumes.
At the time of writing, the total value of the TradingView #Cryptocurrency Market Index is $2,384 billion. This is US$142 billion less than the market capitalization of US$2,526 billion recorded the day before, on April 12.
However, a loss of 5.6% is still better than the three overall indices excluding Bitcoin and Ethereum. Those altcoins lost more than $66 billion, or 9%, of their $730 billion market capitalization during the same period.
Total 3 now has a market capitalization of US$664.27 billion, representing nearly 28% of the cryptocurrency market. Bitcoin accounts for more than 55% and Ethereum accounts for the remaining 17%.
Liquidation of cryptocurrency traders: why is this happening?
When cryptocurrency traders open a long or short position in the derivatives market, they enter into a contract by betting on the future price of the cryptocurrency.
To do this, the trader makes a deposit, provides collateral, and agrees to the liquidation price of the underlying asset they are betting on. When the cryptocurrency reaches the agreed price, the exchange terminates the contract and liquidates the deposit.
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