Other Cryptocurrencies Lead Market Liquidations with 100 Million in Losses
In the past 24 hours, the cryptocurrency market experienced a significant liquidation of over $345 million from trading positions. Surprisingly, $100 million of these losses were from “other” cryptocurrencies that are not in the top 50 by market cap.
This data was obtained by Finbold from CoinGlass on June 8, following a major crash believed to be triggered by macroeconomic factors. Long-position traders in “other” cryptocurrencies suffered the most, with $103.82 million in liquidations, while short-sellers of these lower-cap coins lost $6.09 million, resulting in a total loss of $109.91 million in capital within the day.
Overall, bulls were hit hard with $309.53 million out of the $345.12 million liquidations across all digital assets. Bitcoin (BTC) saw $43.21 million in liquidations, while Ethereum (ETH) had $38.75 million, mainly from long positions.
Altcoin and meme coin traders were heavily affected by these liquidations. TradingView’s crypto market cap index TOTAL3, which excludes BTC and ETH, has lost over $60 billion in market capitalization since June 7. The index is currently hovering around a $666 billion market cap, testing its resilience ahead of a potential altseason.
Analysts have identified a rare opportunity in alternative cryptocurrencies, with the potential for a surge in the market. The recent crash may help filter out solid projects from the meme coin frenzy that has been dominating the market.
It is crucial for traders to be cautious when investing in meme coins, as they come with significant risks due to their speculative nature. These coins often lack intrinsic value and are driven by social media hype. Investing in meme coins is akin to gambling, as traders hope to sell at a higher price to other buyers.
It’s important to note that investing in cryptocurrencies is speculative, and capital is always at risk. Traders should be aware of the potential for substantial financial losses, especially during volatile market conditions like those seen in the past 24 hours.