The cryptocurrency market is in a state of panic due to the market-wide crash that has rocked Bitcoin and altcoins. As the price of Bitcoin continues to fall from support to support, tens of thousands of traders have lost their positions, leading to losses of hundreds of millions of dollars in the past day alone.

Cryptocurrency market liquidations exceed $290 million

Bitcoin’s price has fallen sharply over the past 24 hours, eventually falling below $57,000 before bouncing back. However, the damage has already been done, with long-term investors suffering the biggest losses over the past day.

According to data with Coinglass, there were $292.8 million worth of crypto liquidations over the past day. A total of 105,458 traders were liquidated, with 88.61% of them being long traders. The majority of these liquidations occurred in the past 12 hours after Bitcoin fell from $61,000 to $57,000, with liquidations totaling $204.97 million.

Bitcoin alone saw $91.7 million in liquidations, with the second-largest cryptocurrency being Ethereum, with $69.86 million in liquidations. The single largest liquidation event occurred on the Huobi cryptocurrency exchange in the BTC-USD pair, where a single liquidation call resulted in a loss of $10.49 million.

Binance, the world’s largest cryptocurrency exchange, recorded $122.67 million in liquidations, OKX recorded $89.83 million in liquidations, and Huobi recorded $42.07 million in liquidations. Bybit and CoinEx came in fourth and fifth with $23.04 million and $9.42 million, respectively.

Bitcoin Recovery Could Change Liquidation Trajectory

As mentioned above, liquidations in the cryptocurrency market were mostly dominated by long trades, as Bitcoin price continues to fallHowever, with the price showing a tendency to bounce back, rising above $57,900 at the time of writing, tiny positions are starting to feel the heat.

Coinglass data shows that long liquidations have fallen from 88.61% in the last 24 hours to 56.48% in the last hour. If the price continues to rise, then short-term investors, energized by the bear wave, could suffer further crashes from here.

Despite the erosion of positive sentiment, Bitcoin’s daily trading volume rose 50% to $37.59 billion. So far, bulls appear to be developing support, making it a point to hold if the recovery is to continue.

Bitcoin is currently trading at $57,909, down 3.87% over the past day. It is down 5.23% on the weekly chart and 15.95% on the monthly chart.

Featured image created with Dall.E, chart from Tradingview.com