Crypto Traders Hits Hard as Market Crash Wipes Out $1.16 Billion

The global cryptocurrency market has recently experienced a significant downturn, with a 5.66% decline, unsettling investors. Bitcoin, which had been striving to surpass the $109,000 mark, has crashed to approximately $104,000, representing a 3.6% decrease within a single 24-hour period.

This volatility has had a profound impact, particularly on leveraged traders. Data indicates that over 247,000 traders faced liquidation in the past day, culminating in total liquidations amounting to $1.15 billion. The most substantial single liquidation order involved a $201 million long position on the Binance exchange.

Bitcoin’s price drop could exacerbate the situation. If Bitcoin falls to around $95,800, approximately $11.76 billion in bets that it would rise could be lost, potentially triggering significant selling.

Here’s Why Bitcoin Dives Down

The price drop isn’t just happening to Bitcoin. Ethereum, XRP, Solana, and even the memecoin Dogecoin have also dropped in price by between 6% and 15%. This widespread drop has resulted in billions of dollars’ worth of assets being sold off.

Notably, the mix of conflict between Israel and Iran, along with general economic events, has led to crypto traders losing over $1.16 billion in the past day, and they could lose even more.

To make matters worse, Bitcoin ETFs, which track the price of Bitcoin, have experienced a change in fortune. After money flowed in, $202 million flowed out on June 12th. Fidelity’s ETF saw the most money leave, with $197 million withdrawn, while ARK Invest’s ETF lost over $10 million.

Moreover, several factors have contributed to the decline in Bitcoin’s price. The growing conflict between Israel and Iran, including a strike on Iran’s nuclear and missile sites, has led Iran to declare an emergency.

Price Action Amid Market Chaos

Amid this chaos, Bitcoin’s price fell to $103,000, and Ethereum dropped to $2,400, showing that investors are avoiding risk. Data shows that over 247,000 crypto traders had their positions closed in a single day, resulting in a loss of $1.16 billion.

The most considerable single loss occurred on the Binance exchange, valued at $203.1 million. Bybit and OKX were close behind. Bitcoin alone lost nearly $450 million, with bets on the price going up accounting for $422 million. Ethereum lost almost $400 million, while XRP lost $52 million, among others.

“Israel attacks Iran. Oil prices jump 5% while S&P futures fall 1.5%. In response, investors seeking a safe haven buy gold, sending its price up 0.85%. Meanwhile, investors dump Bitcoin, pushing its price down 2%. How can anyone consider Bitcoin to be a digital version of gold?” Peter Schiff stated on an X post.