Crypto liquidations surpass $520 million in past day amid increased market volatility

Over the past 24 hours, cryptocurrency traders were liquidated for over half a billion dollars as bitcoin and ether faced increased market volatility.

In the past 24 hours, nearly 186,000 traders were liquidated, with the total liquidations across centralized exchanges amounting to $524.8 million, according to data from Coinglass.

The data showed that Bitcoin led these liquidations, with over $142.5 million in positions liquidated in the past 24 hours, of which about $101 million were long positions. Ether also faced significant liquidations, with $89.9 million liquidated, of which $49.2 million were long positions. 

Liquidations occur when a trader’s positions in a particular market are forcibly closed due to significant losses or insufficient margin to meet the maintenance requirements.

Bitcoin dropped 2.26% over the past 24 hours to trade at $94,314 at the time of writing, according to The Block’s price page. Earlier this week, bitcoin momentarily surged above $100,000 , fueled by rising market optimism surrounding the pro-crypto incoming administration.

Ether edged down 0.85% to change hands at $3,335 after witnessing a double-digit decline the previous day. The Block's GMCI 30 index , which measures the performance of the top 30 cryptocurrencies, dropped 1.23%.