In short: Ripple's legal victory resulted in a significant rally for digital assets, with over $300 million in liquidations. Short traders incurred the majority of losses, accounting for $219 million, while long traders made $82.74 million. Bitcoin led in liquidation volumes, but XRP traders had the second-highest volume at $62.17 million. The market is stabilizing, and unless a rally or crash occurs, liquidation volumes are expected to decrease. Presently, Bitcoin is above $31,000, Ethereum is below $2,000, and XRP has seen a 60% gain, priced at $0.779.
Our quick analysis:
The last 24 hours have taken crypto investors on a rollercoaster ride, leaving them both thrilled and bewildered. In a landmark lawsuit settlement on Thursday, July 13, Ripple emerged victorious, igniting a massive rally that sent shockwaves throughout the industry. As digital assets witnessed double-digit gains, the volume of liquidations skyrocketed, surpassing a staggering $300 million.
Crypto Short Traders: In Deep Waters
The surge in liquidation volumes can be attributed to the remarkable price recovery. Consequently, short traders, who bet on prices crashing rather than rebounding, found themselves taking a serious hit. Based on data from Coinglass, out of the total liquidations exceeding $300 million, short traders accounted for a substantial $219 million. Long traders, on the other hand, settled at a considerably lower volume of $82.74 million during the same 24-hour period. Unsurprisingly, short traders constituted an overwhelming 70.33% of all liquidations, while long traders turned a more profitable corner.
Interestingly, over 86,000 traders woke up to liquidated positions in the past day. However, the largest liquidation on record took place on the Bitmex exchange, with an impressive value of $2.82 million. This heroic feat was executed across the XRPUSD pair, leaving spectators in awe.
Beyond Bitcoin: XRP Traders Steal the Show
Although Bitcoin predictably dominated the liquidation volumes, Ethereum surprisingly lost its usual position as the second-highest contender. This time, the spotlight was stolen by XRP traders, with a noteworthy $62.17 million liquidated within a mere 24 hours.
Will the Liquidation Saga Continue?
Wild price fluctuations following Ripple's courtroom triumph played a significant role in triggering the mass liquidations. With the court ruling that XRP is not a security, the digital asset soared by over 60%, pulling the rest of the crypto market along for the exhilarating ride.
As the market ventures into a new trading day, stability is gradually returning, and liquidations are beginning to find their footing. Unless the market encounters a catalyst that pushes it into another rally or drastic plunge, we can expect more moderate liquidation volumes going forward.
Currently, Bitcoin continues to hold firm above $31,000, Ethereum hovers just below $2,000, and XRP, riding its 60% gains, maintains a price of $0.779 at the time of writing.
In this ever-fluctuating cryptocurrency rollercoaster, one thing is certain: brace yourself for surprises, keep an eagle eye on the market, and buckle up for more thrilling twists and turns.
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Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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