Cryptocurrency liquidations surged over the past day as markets plummeted and sentiment waned. Moreover, the vast majority of those records were long positions in various crypto assets, according to Coinglass.
The total amount in cryptocurrency liquidations over the past 24 hours has reached $135 million. July 24th was the highest day of liquidation over the last 10 days as the markets fell again.
Cryptocurrency liquidations on the rise
Data from analytics platform CoinGlass shows a 225% increase in liquidations on July 24 from the previous day. Moreover, 85% of them were longs in BTC, ETH, and XRP.
It stated that during the past twenty-four hours, 46,066 traders were liquidated.
Bitcoin fell 2.2% on the day to touch $29,000, wiping out a lot of long positions from those who expected it to reach $30,000 again.
Ripple’s XRP also caused a lot of pain for traders as it fell below $0.70 for the first time since news of the SEC’s victory.
The last four hours paint a different picture with DOGE shorts clearing as the token surges. About $1.8 million in liquidations occurred on Dogecoin alone with DOGE making 8% on the day.
Speculators were also liquidated in the newly launched Worldcoin WLD as the token was dumped by more than 40% less than a day after its launch.
The spot cryptocurrency markets have lost $23 billion over the past 24 hours. Moreover, this brought the total capitalization back to $1.21 trillion, its lowest level in a month.
The volatility index decreases
However, the markets are still within a range-bound channel that has persisted for the past four months.
Greeks Live derivatives analytics platform mentioned The volatility index for BTC and ETH has fallen to its lowest level since the metric was measured two years ago.
This means that implied volatility (IV), which is measured from contract expiration, is also at an all-time low. Derivatives traders expect more sideways moves as volumes and liquidity shrink.
“Continued low liquidity led to a sharp decline in IV levels, and today’s rapid decline to a new short-term low of $29,000 failed to lift the IV, with almost all IV contracts not rising, and the market remained dead.”
Reflecting this lull in volatility and sentiment, the Bitcoin Fear and Greed Index remains neutral, showing in the middle at 50.
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