The last 24 hours saw high-value liquidations across crypto markets as Bitcoin (CRYPTO: BTC) dropped as low as $25,117.
What Happened: According to data from CoinGlass, at the time of writing around $513 million was liquidated from over 180,000 traders.
The majority of liquidations were seen by traders in long positions — a total of $339 million longs were liquidated while $169 shorts were liquidated.
Bitcoin saw a total of $210 million in liquidations as the asset fell to a low last seen in December 2020. Ethereum (CRYPTO: ETH) saw $156 million in liquidations as the asset dropped to $1,318.
Some of this sudden and immense sell pressure can be attributed to crypto lending platform Celsius (CRYPTO: CEL) which was observed sending $320 million worth of crypto from Aave to FTX as the platform’s liquidity crisis unfolded earlier today.
I can think of two possible explanations:On-chain analysts caught wind of fund flows from Celsius to FTX, where the lending platform sent 6,000 Wrapped Bitcoin (CRYPTO: WBTC) and 20,000 ETH to the crypto exchange.1) Borrowing from FTX against this collateral to move their leverage off-chain
2) Selling assets
What other possible explanations might there be?
— Dirty Bubble Media: (@MikeBurgersburg) June 13, 2022
Celsius said it was pausing all withdrawals, swaps, and transfers between accounts.
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