Crypto Bloodbath: $1.3B in Liquidations Shakes Market

Crypto traders have faced a significant challenge in the past 24 hours, with over $1.3 billion in long and short position liquidations. This has led to a tense market environment, with investors blaming exchange platforms for long liquidations and market manipulations.

The latest data shows that 367,789 traders have experienced long and short position liquidations in the last 24 hours. The world's largest cryptocurrency exchange, Binance, witnessed the largest single liquidation, valued at $20.8 million. Notable cryptocurrencies, including Bitcoin, Ethereum, Solana, XRP, and Chainlink, have seen significant price drops following the mass liquidations.

The Bybit exchange has topped the list with 96% long liquidation worth $500 million in the past 12 hours. Following Bybit, Binance contributed $246 million in liquidation, which is the second-highest level so far. Interestingly, both exchanges have seen a high proportion of long liquidations, raising concerns among investors.

Traders who anticipate price increases in the long term often take long liquidation positions. When the price falls below the margin, crypto exchanges automatically liquidate these positions to prevent further losses. One prominent trader on Twitter accused Binance of "capitulating the market" and suggested that investors remove cryptocurrencies from giant exchanges like Binance, Bybit, Okx, and Coinbase, advising them to "buy the dips and HODL."

On the other hand, Coinank claimed that long liquidations do not offer any profit while Bitcoin prices are dropping. The crypto market's downfall could be attributed to President Trump's decision to add 25% trade tariffs on Canada and Mexico, which may have a continuous impact on major coins like Bitcoin, Ethereum, and Solana. This tariff affects not only the stock market but also the crypto market.

Normally, the price of Bitcoin goes up with a large purchase. However, when CEO Michael Saylor bought 20,356 Bitcoin, the coin price decreased, indicating a potential shift in market dynamics.