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<p dir="ltr">Recent&nbsp;<a href="https://www.coinglass.com/LiquidationData" rel="noopener noreferrer nofollow">data</a> from Coinglass shows that the crypto market witnessed a staggering $138.57 million in liquidations over the past 24 hours, leaving market traders questioning the factors behind this major disruption.</p>
<h2 id="overview-of-liquidations">Overview of liquidations</h2>
<p dir="ltr">Crypto liquidations are the forced closing of leveraged positions on multiple crypto exchanges when the market moves against them. Simply put, when the value of a trader's assets falls below a specific threshold, exchanges immediately sell those assets to pay losses, resulting in a liquidation event.</p>
<p dir="ltr">According to data from Coinglass, the 24-hour volume revealed total liquidations of $138.57 million, with $120.17 million accounting for long positions and $18.40 million for short positions.</p>
<p dir="ltr">Bitcoin (<a href="https://u.today/btc-to-120000-top-trader-henrik-zeberg-shares-epic-new-bitcoin-price-prediction" rel="noopener noreferrer nofollow">BTC</a>) and Ethereum (<a href="https://u.today/ethereum-eth-risks-trip-to-2000-if-this-level-falters-details" rel="noopener noreferrer nofollow">ETH</a>) bore the brunt of the liquidation wave, with Bitcoin leading the pack. Over the past day, Bitcoin recorded a total of $25.68 million in liquidations, with long traders losing $6.39 million and short traders facing losses of approximately $2.98 million. Ethereum recorded even steeper losses, experiencing a total liquidation amount of $37.06.</p>
<p dir="ltr">Currently, Bitcoin is trading at $40,722.72, down by 2.43%, while Ethereum has seen a 4.07% drop to $2,372.45 within the same time frame. Surprisingly, even the newly launched MANTA tokens released by&nbsp;<a href="https://u.today/manta-network-raises-288-million-as-its-squad-game-event-concluded" rel="noopener noreferrer nofollow">MANTA Network</a>, faced a mild liquidation of $1.95, highlighting the widespread impact of the market downturn.</p>
<h2 id="root-causes-and-market-analysis">Root causes and market analysis</h2>
<p dir="ltr">The recent market turbulence has been linked to heightened volatility, influenced by various factors. Analysts point to the approval of multiple spot Bitcoin Exchange-Traded Funds (ETFs) by the SEC as a&nbsp;<a href="https://u.today/bitcoin-price-action-explained-heres-real-reason-why-btc-dipped-after-etf-approval" rel="noopener noreferrer nofollow">potential catalyst</a>. In the 12 days following the approvals, Bitcoin lost over 7% of its value, dropping from above $48,000 to around $43,000.</p>
<p dir="ltr">On-chain analytics from Glassnode&nbsp;<a href="https://insights.glassnode.com/the-week-onchain-week-03-2024/" rel="noopener noreferrer nofollow">suggests</a> that the price drop may have been driven by a combination of derivatives leverage and spot profit-taking. However, multiple measures in both the on-chain and derivatives domains indicate that a sizable proportion of Bitcoin investors viewed the ETF approval as a sell-the-news opportunity.</p>

Crypto Liquidations Hit $138 Million: What Happened?

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