According to recent data from Coinglass, 60,062 traders were hit with liquidations as the entire crypto market dipped. The cryptocurrency market tumbled under selling pressure after failing to sustain its bullish momentum. The total market capitalization has shrunk by $65 billion over the last day, slipping below $1.8 trillion.
Over $221 million was liquidated in the last 24 hours, with roughly $20 million occurring in the last four hours; nearly $93.12 million of it was tied to Bitcoin trading positions. On the BitMEX exchange, the largest single liquidation order was placed.
Liquidations of trading positions related to Ether (ETH), the Ethereum blockchain's native coin, totaled $58 million. Liquidations tend to occur when a trader lacks sufficient funds to satisfy a margin call or a demand from the exchange for additional collateral to maintain the trading position funded.
Bitcoin hit a low of $40,800 on March 4 after the largest cryptocurrency by market capitalization had been steadily declining since March 2, presumably due to fears that the Federal Reserve might tighten monetary conditions quickly in the face of rapidly growing inflation.
The Crypto Fear and Greed Index that gauges market sentiment measured ''fear'' at press time.
Crypto market dips
Altcoins likewise fell as the cryptocurrency market tumbled under selling pressure. Solana (SOL), Avalanche (AVAX) and Ethereum (ETH) have taken the biggest losses, plunging by more than 6%. Meme coins, such as Shiba Inu and Dogecoin, are also down more than 3%.
Bitcoin, the world's leading cryptocurrency, slipped to lows of $40,800 on March 4 before rebounding to $41,661 at press time. The cryptocurrency is now down almost 4.59% in the last 24 hours, suggesting that bears might be back in the driver's seat. Bitcoin tanked to $34,324 on Feb. 24, hitting a one-month low.
However, it then managed to stage an impressive rebound and ended up reclaiming the $45,000 level for the first time. The lead crypto had risen to highs of $45,332 on March 2 before tumbling down.