Data shows that the crypto derivatives market has seen numerous liquidations previously day as Bitcoin has crashed to $59,000.

Bitcoin Has Seen A Sudden Crash Under $60,000 In The Last 24 Hours

The value motion previously day has shocked Bitcoin investors because the cryptocurrency has taken a plunge, erasing all of the asset’s recovery within the last week.

The chart below shows the asset’s trajectory over the previous couple of days.

Looks like the value of the asset has taken a notable hit in recent days | Source: BTCUSD on TradingView

During this crash, the coin dropped to under $59,000 but has since recovered to $59,900. Despite the rebound, BTC has still been down around 4% over the past 24 hours.

As is normally the case, the remaining of the sector has followed the unique cryptocurrency on this bearish direction. Nevertheless, many altcoins have managed to limit their losses to a size lower than BTC’s.

Given the volatility the sector as a complete has seen previously day, it’s not surprising that the derivatives market has been shaken up.

Crypto Derivatives Market Has Just Seen $319 Million In Liquidations

In response to data from CoinGlass, the cryptocurrency derivatives market has seen the liquidation of a considerable amount of contracts in the course of the last 24 hours. “Liquidation” here naturally refers back to the forceful closure that any open contract undergoes after it has amassed losses of a certain degree.

Below is a table that displays the relevant data related to the newest mass liquidation event within the sector.

The liquidations appear to have been dominated by the long side of the market | Source: CoinGlass

As is visible, the overall cryptocurrency market liquidations have stood at $319 million on this window. Of this, $261 million of the liquidations have come from the long contract holders, representing over 80%.

The disproportionality between longs and shorts is sensible, as many of the derivatives flush has occurred due to crash that Bitcoin and others have observed during this era.

Regarding the person contribution towards these liquidations by the varied symbols, Bitcoin and Ethereum, the 2 largest coins within the space, have also come out on top.

The breakdown of the mass liquidation event by symbol | Source: CoinGlass

Interestingly, the gap between the 2 has been lower than $6 million, when often BTC has notably higher liquidations. That is despite the fact that ETH’s negative returns have been just like BTC’s.

The trend suggests that Ethereum has just had higher-than-usual speculation behind it recently, with investors choosing higher risk in the shape of leverage. The volatility has worn out a lot of these speculators, so it stays to be seen how interest within the asset will look in the approaching days.

Featured image from Dall-E, CoinGlass.com, chart from TradingView.com