The last 24 hours have been more than interesting for crypto investors from all over the world. On Thursday, July 13, one of the largest lawsuits in industry history came to an end, and the ruling in Ripple’s favor sparked a mass rally. As digital assets across the space posted double-digit gains, liquidation volumes increased rapidly and now exceed $300 million.
Short cryptocurrency traders take big losses
The high volumes of cryptocurrency liquidations in the market so far have been the result of price recovery. As such, the vast majority of traders who have been losing money have been short traders, that is, traders who were betting on prices falling rather than rallying.
According to Coinglass data, of the more than $300 million in liquidations, traders shorted a total of $219 million. On the other hand, the volume from long traders was much lower, coming in at just $82.74 million for the same 24-hour period. This means that short traders accounted for 70.33% of all liquidations during this time, as long traders made the most money.
Additionally, more than 86,000 traders had their positions liquidated over the past day, but the largest liquidation occurred on the Bitmex exchange. This position was worth $2.82 million at the time of liquidation, and it was held in the XRPUSD pair on the exchange.
Settlements cross $300 million in 24 hours | Source: Coinglass
Unsurprisingly, Bitcoin led the liquidation volumes during this time, but interestingly, Ethereum was not the second highest volume as it usually is. That title was claimed by XRP traders this time with a total of $62.17 million settled in 24 hours.
Will the sales continue?
A major factor behind the selloffs was the wild price fluctuations triggered by Ripple’s victory. Since the court declared that XRP was not a security, the price of the digital asset rose more than 60%, taking the rest of the crypto market with it.
However, as the market has entered a new trading day, prices are beginning to stabilize and selloffs are beginning to settle. If the market continues like this, there will be no large liquidation volumes in the future. Unless something triggers a rally or decline, which would lead to more selling off.
For now, the prices of digital assets such as Bitcoin, Ethereum, and XRP are holding up their gains from yesterday quite well. BTC is still above $31,000, ETH is trading slightly below $2,000, and XRP is still seeing 60% gains with a price of $0.779 at the time of writing.
Total Crypto Market Capitalization Exceeds $1.2 Trillion | Source: Crypto Total Market Cap at Tradingview.com
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