Data from the on-chain liquidation tracker, Coinglass, shows that the past 24 hours have not been rosy for bullish leverage traders. With the crypto market plunging and BTC unexpectedly dropping in value, over 120,000 traders have collectively lost $500 million as liquidations have been triggered.
The most affected trader lost $3.15 million on a BTC-USD position on the Hyperliquid perpetual platform.
First, a Rally
Notably, the crypto market has been on the green side since last week. BTC has surged to set a new all-time high above $123,000, and many altcoins have followed suit. As a result, the crypto market capitalization jumped to about $3.67 trillion as more investors entered the crypto market.
Moreover, investors seeking to access the crypto market without fully integrating into the ever-evolving blockchain ecosystem also benefited from the pump, as they acquired shares of approved crypto exchange-traded funds (ETFs). Consequently, bitcoin ETFs amassed over $2.7 million last week and ended the previous business day with about $220 million in inflows.
Price Dip Leads to $500M Loss
However, the rally didn’t last long as many investors saw the uptrend as an opportunity to secure profits, resulting in a price dump. BTC saw a sharp 5.7% plummet from its all-time high of $123,200 to around $116,200. Altcoins like Solana (SOL) slumped from $168 to $158, a more than 6% dip, while Ethereum (ETH) had an almost 5% drop from 3,083 to 2,922.
Consequently, many bullish traders who had opened buy orders left the market with losses. BTC traders lost about $158 million. ETH traders lost over $105 million. Traders who longed SOL, XRP, and Dogecoin shed over $58 million amongst others.
Another possible contributor to the price plummet is the forthcoming United States Consumer Price Index (CPI) and inflation rate report scheduled for Tuesday. Notably, during this time, investors sell shares and stay out of the market as the CPI report may have an unfavorable effect on their holdings.
Is a Market Recovery Imminent?
Following a significant price jump, as seen in BTC and other altcoins, a brief period of profit-taking is expected, leading to pullbacks. However, a close look at the BTC daily chart still shows an uptrend as the leading crypto is expected to rise $130,000 before the quarter, followed by a surge to $180,000 according to asset manager VanEck’s analysts.
Meanwhile, a few institutional investors with long-term plans for BTC are displaying unwavering confidence by filling their reserves with many units of the leading crypto, notwithstanding current price action.
