Crypto Market Hit with $300 Million Liquidation Spree Amid Bitcoin's Crash

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The cryptocurrency market has been hit by a wave of liquidations

, as much as $309 million worth of crypto has been liquidated over the past 24 hours alone. The largest single liquidation order happened on Binance, with one unlucky trader losing $15.36 million in a single day. , the largest exchange by trading volume, is in the lead by total liquidations with $122.36 million. OKX and Huobi come in second and third places with $86.4 million and $48.8 million, respectively.

Earlier today, the price of the largest cryptocurrency plunged to an intraday low of $60,700, triggering a string of liquidations. A lot of market participants were caught off guard by Mt. Gox, the now-defunct exchange, announcing that it would start repayments the following month. The Monday announcement exacerbated Bitcoin's plunge.

Some victims of the 2014 hack will be likely inclined to sell their assets. However, the level of selling pressure is likely to be overestimated since Mt. Gox claims have already been traded for years. The volatility could also be partially caused by the crucial PCE price index data that is on track to be released this Friday. The PCE price index data will likely influence the US Federal Reserve's rate cut decision.

With that being said, the Bitcoin Relative Strength Index has now hit oversold territory on the daily chart, which suggests that the cryptocurrency might experience a bounce in the near future due to overly bearish sentiment.

 

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