After weeks in a row of low volatility for cryptocurrencies, August 17 closed the day with a scary red candle, with the whole crypto market losing over $71.60 billion in total market cap, for a 6% drop. As crypto assets plummeted, hundreds of thousands of traders were liquidated from their positions, effectively losing more than $1.04 billion from their trades.
Liquidation data retrieved by Finbold from Coinglass shows that, among the $1.04 billion liquidated from 177,003 traders in the last 24 hours, $836.19 million (80%) were from long positions — traders who were betting the price would go up, but faced massive drop.
Liquidation data. Source: Coinglass (registered on August 18, at 8am UTC)
Although the most affected asset was Bitcoin (BTC), with $498.81 million in liquidations from a majority of long positions, the largest single liquidation order happened for a trader of Ethereum (ETH), for $55.92 million in losses alone. ETH had over $309.08 million in liquidations, also for a majority of long positions.
BTC 1-day price chart. Source: Finbold
The massive dump surprised many traders, who got their trading positions liquidated, but Finbold had already reported expert analysis about one big dump, before a potential pump for Bitcoin, on August 7.
Ethereum price analysis
Ethereum also had its own ‘red day’ with 6.14% on losses, now being traded at $1,685, by press time. ETH price action is usually correlated to BTC and macroeconomics, although there are some positive signs for the second-largest cryptocurrency by market cap.
ETH 1-day price chart. Source: Finbold
As it happened to Bitcoin, experts were also foreseeing a dump for Ethereum, that would bring its price to the $1,600 zone (as it is), before a possible recovery that could drive ETH’s price up. This analysis was also reported by Finbold on August 14.
All things considered, the ability of both Bitcoin and Ethereum to meet the above analysts’ expectations will depend on further developments related to the projects, as well as the general sentiment on the wider crypto and macroeconomic landscape.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
