The cryptocurrency market witnessed a sudden dip earlier today, causing a significant increase in the amount of liquidations. But the downtrend seems to be fading away.
According to data provided by CoinGlass, over $178 million have been liquidated from the crypto market over the past 24 hours, marking a 292% increase. Bullish traders, holding long positions, witnessed most of the losses, worth $153 million.
The total open interest in the crypto ecosystem declined by 2% in the past 24 hours and is currently hovering at $55 billion.
Data shows that most of the liquidations were executed in retail tradersâ positions. The largest single liquidation, worth $2 million, happened on the OKX exchange.
Ethereum (ETH) is leading the chart with $55 million in liquidations followed by Bitcoinâs (BTC) $35 million.Â
You might also like: CKB skyrockets 111% in a week following Upbit listing, hits highest level since June
The massive liquidations brought a dip to the crypto market. The global cryptocurrency market capitalization declined by 3.6% in the past 24 hours and is sitting at $2.14 trillion, according to data from CoinGecko.
Crypto market cap â Sept. 16 | Source: CoinGecko
Bitcoin dropped to an intraday low of $58,150 but soon regained momentum to the $59,000 mark.
According to CryptoQuant, the number of Bitcoin addresses depositing into exchanges has dropped to 132,100 â a level last seen in 2016.
#Bitcoin Exchange Depositing Addresses at Its Lowest Level Since 2016âA low value suggests a decrease in the number of investors selling coins on spot exchanges, potentially indicating a reduction in selling pressure.â â By @CryptoOnchain Read more đhttps://t.co/8S775z2oue pic.twitter.com/dQ0K1lss7K
â CryptoQuant.com (@cryptoquant_com) September 16, 2024
The indicator shows that the number of holders selling BTC has significantly decreased. This will, consequently, hint at a declining selling pressure and lower price volatility.
Per a crypto.news report on Sept. 15, over $1.3 billion worth of BTC left centralized exchanges last week. Bitcoinâs on-chain movements and indicators show a potential bullish momentum.
However, macro events could still shift the market direction despite the bullish investor sentiment.
Read more: Avalanche-backed borrowing protocol DeltaPrime suffers $4.5m hack
