Bitcoin’s recent decline to around $67,000 meant severe losses, especially for crypto traders who were long on the asset.
About 200,000 traders were liquidated early Friday as Bitcoin corrected to $67,000. According to Coinglass liquidation data, nearly $700 million is being wiped off the crypto market.
Unsurprisingly, Bitcoin topped the liquidation chart, with asset traders losing over $242 million. A staggering 80% of the liquidated traders were long, accounting for a loss of $195.23 million. Ethereum’s correction to $3,689 also had a significant impact, wiping out almost $115 million from the market’s futures trading sector.
Solana long traders also experienced significant losses in the wake of the broader market correction. Despite a resilient push by over 8% to $180 on early Friday, the subsequent trading at $175 resulted in an almost even liquidation heatmap. Bull traders lost $19.33 million, while bears lost $17.64 million, totaling nearly $37 million.
Meanwhile, Dogecoin led the memecoin bloodbath, with leveraged traders losing $20.71 million across exchanges. Elon Musk’s revelation of his plans to start accepting DOGE as a means of payment pushed the token over 18%, but late long traders lost $14.4 million after the broader market correction.
The highest singular liquidation during the correction was on a BTC/USDT pair on OKX, where the trader lost $13.3 million.
Expected Correction
The market correction was expected as a couple of indicators pre-informed investors of an impending occurrence. Coinfomania reported earlier in the week that the Fear and Greed index had hit 92, dictating an extremely greedy scenario.
The RSI on the daily chart had as jumped high as 81, suggesting that the market was overbought. Also, Bitcoin and the crypto market have barely seen a notable correction, with the last significant one coming when Bitcoin grappled with the resistance of its previous all-time high on March 5.
More Correction?
It is unknown how low Bitcoin can go as bullish macroeconomics continues to build around the asset. The growing demand from US ETF products and the halving all present bullish scenarios for the largest crypto asset.
However, the February customer price index (CPI) coming in hotter than expected might point to further delays in the Federal Reserve’s (Fed) interest rate cuts. At press time, Bitcoin is trading above $68,000 with a market cap of $1.3 trillion.
