Bitcoin futures long liquidations reached a new eight-month high as BTC price crashed below $22,000 on Friday
After a short bullish ride, the crypto market crashed to new monthly lows. Moreover, Coinglass data indicates that 157,098 traders got liquidated in the past 24 hours, with total liquidations exceeding $551 million.
Bitcoin (BTC), which was already nearing the $25,000 resistance level, fell to a new two-week low of $21,747. Meanwhile, Ether (ETH), the second-largest crypto, has slumped by 6% over the past 24 hours to register a new weekly low of $1,726. The crash saw Bitcoin traders lose over $203 million, followed by Ether traders at $140 million. Moreover, BTC futures long liquidations reached an eight-month high of $84,934,697.05 on OKX, far exceeding the previous high of $48,630,183.66 observed in May.
Besides, the number of liquidated long positions outnumbered the short ones by a significant margin. This fact shows that market sentiment was highly bullish until the steep fall. Thus, the value of short positions liquidated was only $41 million against $398 million in long positions.
A sudden market plunge is attributed to the Fed’s expected interest rate hike in September. Before that, August consumer price index data appeared lower than expected, leading to a bullish surge in crypto and forex markets alike. A similar situation happened in June. Then interest rate hike of 75 basis points led to crypto market turmoil after an initial price surge.