Bitcoin's (BTC) recent dip below the $29,000 mark in early trading hours on Thursday triggered a significant liquidation across the cryptocurrency market, totaling around $160 million. Coinglass data indicates that the majority of losses were absorbed by long traders, with Bitcoin and Ethereum (ETH) accounting for a combined loss of $62.67 million.
The cryptocurrency market witnessed a substantial liquidation of $158.12 million within the last 24 hours, affecting 54,608 traders. The most significant single liquidation occurred on Bitmex, with an XBTUSD position valued at $2.26 million. Over 60% of total liquidations took place on OKX and Binance exchanges, resulting in losses exceeding $100 million.
Earlier in the day, Bitcoin declined to a multi-week low of $28,428 after trading above $29,000 for an extended period. This price movement marks a notable shift from the relatively stable performance observed last month when BTC's and ETH's 90-day volatility dropped to multi-year lows of 35% and 37% each.
CryptoSlate Insights attributed the drop-off to multiple macroeconomic factors including rising U.S. treasury yields and a strengthening U.S. dollar index. Market analyst Willy Woo echoed these sentiments in a recent post on X (formerly Twitter), citing "macro headwinds from US dollar strength" and increased demand on futures and on-chain markets.
Data from CryptoSlate also shows that all top 50 crypto assets, including Ethereum and BNB, registered losses during the reporting period as the broader market plunged 1.83%.
According to recent Coinglass data, there was substantial liquidation activity across the market totaling $31.33 million within the last hour. Among these, BTC's liquidation amounted to approximately $21.08 million while Ethereum's stood at around $3.75 million.
Analysts attribute this sell-off to the U.S. Securities and Exchange Commission's ongoing review of several high-profile Bitcoin ETF applications, contributing to market uncertainty. Other top cryptocurrencies such as Ethereum, Binance Coin, and Solana have also experienced considerable declines today, indicating a broader market downturn.