According to Coinglass, 60,062 traders were affected by the liquidation as the entire crypto market tumbled. The cryptocurrency market collapsed under selling pressure after failing to maintain its bullish momentum. Total market capitalization has dropped $65 billion in the past day, falling below $1.8 trillion.
Traders lose $221 million in liquidations as Bitcoin altcoins drop
Over $221 million has been liquidated in the last 24 hours, with about $20 million occurring in the previous four hours; nearly $93.12 million is tied to Bitcoin trading positions. On the BitMEX exchange, the most significant single liquidation order was placed.
Source: Coinglass
Liquidation of trading positions involving Ether (ETH), the native coin of the Ethereum blockchain, totaling $58 million. Liquidation occurs when a trader lacks enough funds to satisfy a margin call or request from the exchange for additional collateral to maintain a funded trading position.
Bitcoin hit a low of $40,800 on March 4 after the largest cryptocurrency by market cap steadily declined since March 2, perhaps due to concerns that the Federal Reserve might fast monetary tightening in the face of rapidly rising inflation.
The Crypto Fear and Greed Index that measures market sentiment has measured ”fear” at press time.
![total-crypto-market-capitalization-has-shrunk-by-65-billion-over-the-last-day[1]](https://d3f5j9upkzs19s.cloudfront.net/azcoinnews/wp-content/uploads/2022/03/total-crypto-market-capitalization-has-shrunk-by-65-billion-over-the-last-day1.png)
Crypto Fear & Greed Index as of March 4 | Source: Alternative.me
Altcoins also fell as the crypto market collapsed under selling pressure. Solana (SOL), Avalanche (AVAX), and Ethereum (ETH) suffered the biggest losses, falling more than 6%. Memes, such as Shiba Inu and Dogecoin, are also down more than 3%.
The world’s top cryptocurrency, Bitcoin dropped to as low as $40,800 on March 4 before rising back up to $41,661 by press time. The cryptocurrency is now down nearly 4.59% in the past 24 hours, suggesting that the bears may be back in the driver’s seat. Bitcoin surged to $34,324 on February 24, hitting a one-month low.
However, it later attempted an impressive recovery and eventually regained $45,000 for the first time. The leading cryptocurrency rallied to a high of $45,332 on March 2 before dropping lower.
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