Crypto traders lost over half a billion dollars in market crash

In the last 24 hours, nearly 160,000 cryptocurrency traders lost over $500 million to liquidations as the market crashed. The hit came as Iran launched a new and heavier attack with 180 ballistic missiles against Israel on October 1.

Notably, 86.5% of these liquidations were from long positions, totaling $466.79 million out of $539.63 million. During the high volatility period, 159,793 crypto traders had their positions liquidated.

In particular, a single trader from Binance lost $12.66 million in the Bitcoin (BTC) pair against Tether USD (USDT). Bitcoin alone lost $143.48 million in liquidations during the crash, which sent its price down to $60,170.

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Ethereum (ETH) was close to the leader, accumulating $111.59 million lost from Tuesday to Wednesday. Finbold retrieved the above data from CoinGlass on October 2, which is a cautionary tale for highly-exposed leveraged traders.

Liquidation Heatmap (24 hours) and Total Liquidations. Source: CoinGlass / Finbold

Crash: Nearly $150 billion erased from crypto market capitalization

Overall, $147.44 billion in market capitalization vanished in 12 hours from a local bottom to the crash’s lowest point. TradingView‘s Crypto Total Market Cap index registered a $2.065 trillion value at the worst moment, respecting psychological support.

As of this writing, the index shows a $2.094 trillion capitalization. This is still significantly lower than the $2.213 trillion at the best moment month-to-date.

Crypto Total Market Cap, 4-hour chart. Source: TradingView / Finbold

The panic selling affected all cryptocurrencies, as well as the stock and commodity markets, with even gold registering losses. Interestingly, crude oil and defense stocks were the exception, registering remarkable gains as the Middle East conflict intensified.

In this context, Finbold identified three defense stocks Congressmen were betting on before Iran’s recent attack against Israel.

Bitcoin price analysis

Meanwhile, Bitcoin is down 4.17% in the last 24 hours, trading at $61,110 by press time. BTC started October with an exchange rate above the $63,000 level, closing with its best historical September performance.

Bitcoin (BTC) 24-hour price chart. Source: Finbold

While retailers were extremely bullish on the “Uptober” projection, some prominent analysts had been warning of a potential crash. These analysts’ forecasts are now partially accomplished, with Bitcoin reaching lower levels in an aggressive way, cleaning out long positions.

Therefore, cryptocurrencies could soon see more sustainable growth if the macroeconomic uncertainties, considering what Finbold previously reported, needed to happen.

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