Crypto liquidations have increased over the past day as markets retreat and sentiment fades. Additionally, the vast majority of those rects were long positions in various crypto assets, according to Coinglass.
The total amount in crypto liquidations over the past 24 hours has reached $135 million. July 24 was the highest day for liquidations in the last ten days as markets fell again.
Crypto Liquidations Spike
Analytics platform CoinGlass data shows a 225% increase in liquidations on July 24 from the previous day. Additionally, 85% of them were long positions in BTC, ETH and XRP, he noted.
In the last 24 hours, 46,066 merchants were liquidated.
Bitcoin’s 2.2% drop on the day to hit $29,000 has wiped out many long positions from those who expected it to hit $30,000 again.
Ripple’s XRP has also caused a lot of pain for traders as it falls below $0.70 for the first time since the news of the SEC victory.
The last four hours paint a different picture with DOGE short positions liquidating as the indicator rises. About $1.8 million in liquidations happened in Dogecoin alone as DOGE makes 8% per day.
Speculators in the newly launched Worldcoin WLD have also liquidated as the token jumped more than 40% less than a day after it was launched.
Crypto spot 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 shrinks
However, markets remain within a limited channel that has persisted for the past four months.
Derivatives analytics platform, Greeks Live reported that the volatility index for BTC and ETH has fallen to the lowest level since the metric was measured two years ago.
This means that implied volatility (IV), which is measured by expiring contracts, is also at an all-time low. Derivatives traders expect more sideways movement with reduced volume and liquidity.
“Continued low liquidity has weighed heavily on IV levels and today’s sharp drop to a new near-term low of $29,000 failed to pull IV higher, with almost all IV futures failing to move higher and the market remaining dead.”
Reflecting this lull in volatility and sentiment, the Bitcoin Fear and Greed Index remains neutral, falling to the mid-50s.
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