Monday's Crypto Market Dip Sees $1.04B Liquidated In 24 Hours
Crypto markets dipped lower on Monday, with the overall industry market cap falling to $1.96 trillion, dropping by more than 8% over the last 24 hours.
What Happened: Leading altcoins like Solana (CRYPTO: SOL) and Cardano (CRYPTO: ADA) recorded double-digit losses, as Bitcoin (CRYPTO: BTC) fell to an intraday low of $43,000.
According to data from bybt, more than 207,000 traders were liquidated over the last 24 hours for an amount exceeding $1.04 billion.
The vast majority of liquidated traders — more than 96% — were “long” their positions in the market.
Overall, around $207 million in longs were liquidated, while just $6.42 million shorts were liquidated, meaning a significant proportion of market participants were betting on higher prices.
Bitcoin accounted for $400 million in liquidations, followed by Ethereum (CRYPTO: ETH), which accounted for more than $220 million.
Meanwhile, XRP (CRYPTO: XRP) saw $71 million in liquidations over the last day — more than double the amount liquidated in any other altcoins besides Ethereum.
Solana, Cardano and Dogecoin (CRYPTO: DOGE) saw $30 million, $16 million and $20 million in liquidations, respectively.
Despite the marketwide dip in prices, on-chain analytics platform Santiment noted that with the latest drop come average trading returns that haven't been seen since July (negative 6%).
Santiment drew attention to the MVRV or Market Value to Realized Value metric to show that there is a lower risk to enter the market. MVRV represents an asset's market capitalization divided by its realized capitalization.
“When 30-day MVRV drops below 0%, as it is once again, there is lower than usual risk to enter,” they said.
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