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Cryptocurrency Traders Lost Nearly $2 Billion in Liquidations

February 15, 2021 at 10:01 by Mark Stevenson

According to ByBit, on February 15, the cryptocurrency market saw the second-largest liquidation of long positions since the beginning of 2021.

At trading on February 14, bitcoin updated its all-time high and came close to the $50,000 mark, but before another important breakthrough in the market, a correction began, emptying the pockets of many traders. This is evidenced by ByBit data.

Bitcoin has set a new record at $49,531, according to CoinGecko. The $50,000 level is closer than ever, prompting many traders to take long positions in the flagship cryptocurrency.

However, the market had other plans in this regard. At around 02:26 GMT on February 15, BTC fell below the $46,000 mark, and the capitalization of the cryptocurrency market sank by $1 billion. According to ByBit statistics, the correction resulted in a massive liquidation of long margin positions. According to Bybit, losses from such liquidations reached $1.89 billion in the last 24 hours.

Data on the liquidation of cryptocurrency positions. Source: Bybt

BTC and ETH suffered the most

Bitcoin and Ethereum accounted for most of the liquidations — $90 billion for the two cryptos. XRP traders were also caught off guard by the correction. The Ripple project has grown steadily after falling 50% since the end of December, but as part of today’s correction, traders who have bet on a further recovery have lost almost $100 million.

Among the victims were also EOS, Litecoin (LTC), and  Cardano (ADA) — all of these currencies had previously renewed multi-year highs, and their capitalization has dropped by more than $50 million today.

This is the third-largest liquidation since early 2021. Traders lost $2.5 billion on January 10 when Bitcoin corrected from $41,000 to $30,000. On the same day, Ethereum fell from its all-time high of $1,350 to $900.

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