Traders lost around USD 233 million as Bitcoin reached the highest level in terms of liquidations, followed by Ether Solana and the FTT token. The acquisition of FTX by Binance has affected cryptocurrency prices the most, as the former has liquidity problems.
The recent liquidation of over 380,000 crypto market participants caused the closure of over USD 875 million in positions. Consequently, the price of Bitcoin (BTC) and Ether (ETH) suffered double-digit declines.
Over the last 24 hours, the crypto market has lost much money, as the global capitalization dropped by 6.8% to USD 950 billion. The liquidation of over USD 875 million occurred while the price of Bitcoin fell by 11% to around USD 18,400.
Traders lost around USD 233 million worth of BTC as the cryptocurrency reached the highest level in terms of liquidations. Ether followed it with USD 175, Solana (SOL) with USD 41.5 million, and FTT, the FTX token, with USD 28.4 million.
The largest single transaction occurred on Binance, with USD 6.7 million worth of BTC. The liquidation of more than 380,000 traders amounts to USD 243 million.
The change in the trend affected those traders expecting the crypto market to improve. Bitcoin and other cryptocurrencies have looked good as the end of 2022 approaches, but they may have to continue struggling.
Cryptocurrency Liquidations May Have Canceled the Bullish Market
While the market shows signs of improvement, analysts wonder what may have caused the drop in the prices of cryptocurrencies. Although many worrying developments have occurred over the last few days, nobody knows how they have influenced their value.
The acquisition of the FTX cryptocurrency exchange by Binance is the most prominent development, as the former has liquidity problems. Sam Bankman-Fried, the CEO of FTX, admitted that situation after having denied it, saying the transaction would solve the problem.
Bankman-Fried thanked Changpeng Zhao, the CEO of Binance, saying FTX was in the best of hands. However, the news of the acquisition caused the price of the FTT token to drop considerably.
The Prices of Bitcoin and Ether Break Their Support Levels
The FTX token has dropped by over 70% and might be another victim of the bearish market, alongside Bitcoin and Ether. The price of BTC fell below its USD 20,000 support level and reached a new long-term low of USD 17,100. The value of Ether is also trading at USD 1,300, significantly below its USD 1,500 support level.
BTC and ETH seemed in excellent shape to break out of their resistance levels of USD 22,500 and USD 1,550, respectively. While the market focuses on stabilizing itself, investors must wait longer for that price increase to take place.
Bitcoin is trading at around USD 17,904 and has accumulated a 10.2% loss over the last 24 hours. While its daily trading volume is above USD 84.79 billion, its market capitalization is about USD 343.80 billion.
Meanwhile, the price of Ether has dropped by 20% to around USD 1,190 over the last 24 hours. Its daily trading volume is slightly above USD 31.48, while its market capitalization is roughly USD 150.18 billion, according to CoinGecko.
By Alexander Salazar
