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Crypto market in flux: ETH, PEPE contribute to $50 million liquidation; short positions suffer

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The crypto market was awash with fear and uncertainty as liquidations reached over $50 million, leaving investors reeling and short positions crushed under losses.

Crypto market in flux: ETH, PEPE contribute to $50 million liquidation; short positions suffer

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  • The crypto market witnesses a $50 million liquidation event, with Ethereum and memecoins at the forefront.
  • Short positions take a hit as investors face substantial liquidations.

7 May witnessed a dramatic event in the crypto market as over $50 million worth of investments got liquidated. Ethereum [ETH] took the lead in this wave of liquidation. However, hot on its heels was a memecoin that had been capturing the attention of enthusiasts worldwide.

Crypto market witness over $50 million in liquidations

According to the latest data from Coinglass, the crypto market experienced an extraordinary 24-hour liquidation surpassing the $50 million mark. At the time of writing, the liquidation amount stood at approximately $52 million, having previously surged past $100 million. Ethereum took the lead in liquidation volume, with over $2 million currently liquidated. 

Adding to the liquidation statistics was memecoin Pepe [PEPE], which ranked second, with a staggering liquidation of over 640 billion PEPE. The tokens were equivalent to a value exceeding $1 million. Other affected cryptocurrencies included king coin Bitcoin [BTC], with over 1 million coins.

Short positions see more liquidations

Coinglass’ data further revealed that the liquidations primarily targeted short positions in the market. The data indicated that a substantial portion of investors holding short positions faced liquidation. Also, over 70% of liquidations were witnessed across various major exchanges.

In certain instances, the liquidation rate reached a staggering 100%, leaving no room for short investors to escape unscathed. 

At the time of writing, a detailed breakdown of Bitcoin’s liquidation data demonstrated that shorts accounted for over $16 million. Whereas, long positions experienced liquidations totaling over $12 million.

Considering Bitcoin’s significant share of the total cryptocurrency market capitalization, these liquidations bear significant implications for affected investors.

Crypto market Bitcoin Liquidation

Source: Coinglass

Crypto market maintains $1 trillion mark

According to an evaluation of the crypto market’s capitalization on CoinMarketCap, it remained at an impressive value exceeding $1 trillion. Also, Bitcoin maintained its dominance at nearly 50%.

At the time of writing, the 24-hour trading volume had surpassed $42 billion. Although a widespread chain reaction of liquidations had not unfolded at that point, the prevailing market conditions warranted a cautious approach from investors. 

Crypto market capitalization

Source: CoinMarketCap

Furthermore, the rise in exchange withdrawals and notable instances of high-value cash-outs underscored the need for market participants to remain vigilant and adequately prepared for unforeseen fluctuations in market sentiment.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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