The cryptocurrency market liquidated over $345 million from trading positions in the last 24 hours. Surprisingly, $100 million were from “other” cryptocurrencies outside of the top 50 by market cap.
Finbold retrieved this information from CoinGlass on June 8, following a massive crash that speculators believe happened after macroeconomic data.
In particular, long-position traders exposed to “other” cryptocurrencies had the vast majority of losses, with $103.82 million in liquidations. Short-sellers of these low-cap coins lost only $6.09 million, totaling $109.91 million lost capital in 24 hours.
Liquidation Heatmap, 24 hours. Source: CoinGlass
Altcoin and meme coin traders got ‘REKT’ amid liquidations
In this context, TradingView‘s crypto market cap index (TOTAL3), which includes all cryptocurrencies excluding BTC and ETH, has lost over $60 billion in capitalization since June 7. The index currently indicates a $666 billion market that is testing its resilience before what could be an altseason.
TOTAL3 is slightly below its 30-day exponential moving average (30-EMA, daily chart). Thus, bouncing up from this support level would suggest a bullish momentum for altcoins, likely igniting a surge. Analysts have identified a “once in a few years golden opportunity” on these alternative cryptocurrencies, as reported by Finbold.
TOTAL3 crypto market cap index, excluding BTC and ETH. Source: TradingView
Interestingly, the current crash could help to filter solid projects amid a growing meme coin mania that dominated the market. For example, a crypto influencer registers $8 million in unrealized losses from a meme coin investment.
Meme coins come with significant risks that traders must not underestimate due to their speculative nature. These cryptocurrencies often lack intrinsic value, and their prices are primarily driven by social media hype and buzz.
Crypto influencers and traders who invest in meme coins are essentially gambling, hoping to sell at a higher price to others. This mindset aligns with the “Greater Fool Theory,” which suggests profits can be made from overvalued assets. However, this theory also underscores the inherent risk, as the market may eventually run out of willing buyers.
When hype fades and demand wanes, traders can be left holding worthless assets, resulting in substantial financial losses or traders getting “REKT,” as in the last 24 hours.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
