Over $1 billion of leveraged positions wiped out in the last 24 hours

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Over $1 billion of leveraged positions wiped out in the last 24 hours

On Thursday, over $1 billion of our leveraged positions were liquidated.

After nearly a month of low volatility, the bottom fell out of crypto markets on Thursday.

Over the last seven days, Bitcoin and Ethereum have fallen by 12% and 10%, while other tokens have experienced even more steeper declines.

Investors' reliance on riskier assets like cryptocurrencies has waned as the U.S. Treasury yields reach a 16-year high. The upcoming second estimate of U.S. GDP data for Q2 2023, set to be released August 30, is among the contributing factors that are contributing to the anxiety of further rate hikes by the Federal Reserve to combat inflation.

At the moment, the market expects a 10% chance of a 25 bps rate hike in September, with 32% forecasting a 25 bps rate hike in November.

Over $1 billion of leveraged positions were wiped out in the past 24 hours, marking the largest single-day liquidation event since the implosion of FTX in November 2022.

Nearly $800M of liquidations were liquidated in just 30 minutes, as ETH and BTC briefly crashed below $25,000 and $1,500 respectively.

There were some bright spots in the aftermath of the carnage.

By October, the SEC said it would approve an ETH futures ETF and Grayscale is hiring for its ETF division.

THORChain's RUNE token has rallied 42% in recent weeks, likely due to its new streaming swaps feature.

The AXS and Uniswap's UNI were battered in the last week, losing nearly a fifth of their value.

Shiba Inu fell 17% after the disasterous launch of its Layer 2 network, Shibarium, with $1.7M worth of ETH lost forever.

But Frax's FXS was the only DeFi token not to lead to double-digit losses, down only 4% in the past week.