The last 24 hours have been more than interesting for crypto investors across the globe. Thursday, July 13, saw one of the most important lawsuits in the history of the industry come to an end, and the ruling in favor of Ripple triggered a massive rally. As digital assets across the space recorded double-digit gains, liquidation volumes climbed quickly, now clocking over $300 million.
Crypto Short Traders Take Big Losses
The high volumes of crypto liquidations in the market so far have been a 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 recovering.
According to data from Coinglass, out of the over $300 million in liquidations, short traders made up for a total of $219 million. On the flip side, the volume from long traders was much lower, coming in at only $82.74 million for the same 24-hour period. This means that short traders made up 70.33% of all liquidations during this time, as long traders made the most money.
Furthermore, over 86,000 traders saw their positions liquidated on the last day, but the single largest liquidation happened on the Bitmex exchange. This position was worth $2.82 million at the time of liquidation, taking place across the XRPUSD pair on the exchange.
Liquidations cross $300 million in 24 hours | Source: Coinglass
As expected, 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 around with a total of $62.17 million liquidated in 24 hours.
Will The Liquidations Continue?
A major factor behind the liquidations was the wild price fluctuations that were triggered by the Ripple victory. Since the court declared that XRP was not a security, the price of the digital asset rallied over 60%, taking the rest of the crypto market with it.
However, as the market has broken into a new trading day, prices are starting to stabilize and liquidations are beginning to settle out. If the market continues like this, then there would not be high liquidation volumes going forward. Unless something triggers a rally or a crash, which would lead to more liquidations.
For now, the prices of digital assets such as Bitcoin, Ethereum, and XRP are holding their gains from yesterday quite well. BTC’s price is still above $31,000, ETH is trading slightly below $2,000, and XRP is still seeing 60% gains with its price sitting at $0.779 at the time of this writing.
Total crypto market cap crosses $1.2 trillion | Source: Crypto Total Market Cap on Tradingview.com