Key Points
- •Severe liquidations impact main cryptocurrencies, causing major analytics site outage.
- •Over $587 million in liquidations in 24-48 hours.
- •Coinglass site struggles under unprecedented traffic surge.
The cryptocurrency market experienced massive liquidations exceeding $587 million, affecting major assets like Bitcoin and Ethereum, causing Coinglass's site to crash due to high traffic.
This event highlights significant market volatility, resulting in over 203,000 traders liquidated, with ripple effects across derivatives platforms such as Binance and Bybit.
The cryptocurrency market has been struck by extensive liquidations, exceeding $587 million in the past two days. The Coinglass site, an analytics platform, faced downtime due to the surge in traffic. Leading the impact were Bitcoin and Ethereum.
This situation affects major derivatives exchanges, including Binance, OKX, Bybit, and BitMEX. Coinglass, managed by CEO Ke Ke, reported the event without issuing official statements. The community noted the widespread outage, highlighting severe short position liquidations.
The incident has had immediate effects on crypto valuations. Bitcoin prices fell below $119k, while Ethereum plunged under $4.1k. An unprecedented traffic volume led to the Coinglass site experiencing technical downtime.
With $438 million in short positions liquidated, the market faced a significant impact. Moreover, over 203,000 traders saw their contracts wiped, notably affecting Bitcoin and Ethereum positions and hinting at the broader market's vulnerability.
The financial repercussions included a roughly 2% drop in the market cap, equating to $250 billion. On-chain data revealed changes in trade volumes and asset flows, with ETH and BTC seeing marked outflows and elevated volatility among meme coins on BNB Chain.
Historically, such market fluctuations lead to platform outages similar to May 2021 events. Experts like Raoul Pal recognize, "These are the kinds of brutal resets that leave the strongest hands in crypto." Meanwhile, Coinglass and similar platforms continue to be pivotal during such high-stress periods.