The price of bitcoin temporarily rose above $25,000 in the previous day, but the rejection sent the digital currency plummeting. Before mounting a comeback, it had unavoidably ended in the upper $23,000 range. But at that time, many traders had already suffered damage. As rapidly as the decline had accelerated, liquidations had also accelerated, putting roughly 100,000 traders into the loss region.
The volume of liquidations has drastically increased during the past 24 hours. Tens of thousands of traders found themselves at the mercy of the market as their positions were all liquidated as bitcoin fell below $24,000. The majority of these have taken place in the previous 12 hours, during which time liquidations have exceeded $100 million.
Over 98,000 dealers were affected by the more than $280 million in liquidations that were reported in the previous day. With the recent recovery and the antiquation that has been accumulating prior to the Ethereum Merge, it is safe to say that the bulk of these traders had long holdings.
However, when the price of bitcoin failed to maintain $25,000, the market would once again demonstrate its irrationality. Massive liquidations of cryptocurrencies, including bitcoin, reached $61 million on the previous day alone. The fact that 71.77% of all liquidations were made up of long positions demonstrates how bullish the market had become before the market downturn.