After a brief recovery, the crypto market was back in the red. The largest cryptocurrency by market, Bitcoin (CRYPTO: BTC), dropped below $36,000 on Friday, following a sell-off in U.S. equities.
Reports suggested the plunge came as traders priced in higher interest rates to curb inflation in the U.S.
According to the Coinglass data, liquidations on crypto-tracked futures exceeded $407,000,000 in just 24 hours.
That included over $340.30 million worth of long positions that were wiped out, along with $67.3 million worth of short positions being liquidated.
Some of the most significant liquidations came from Bitcoin traders. Positions on more than 2,000 BTC worth $72.7 million were liquidated over 24 hours, followed by Ethereum (CRYPTO: ETH) at $39.53 million.
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In a Twitter post, analytics firm Santiment said that Bitcoin saw the biggest loss in over a year, followed by a strong liquidation.
#Bitcoin is seeing its 3rd largest capitulation week in over a year, in terms of its ratio of on-chain transactions taken at a loss. The last time $BTC was this far negative for this metric was Feb. 16-22, when prices jumped +20% the following 9 days. https://t.co/PZqw0pTgEK pic.twitter.com/ISp5i9sIuC
— Santiment (@santimentfeed) May 4, 2022
It also mentioned that Bitcoin witnessed massive on-chain activity amid the crypto market pullback.
After yesterday's mid-sized correction, the dust is still settling across #crypto markets. #Bitcoin's network had 1.17M unique active addresses making transactions yesterday, which was the highest amount of utility since December 2, 2021. 📈https://t.co/UWRxZoYyyS pic.twitter.com/pUIh83gwGH
— Santiment (@santimentfeed) May 6, 2022
At the time of writing, Bitcoin was trading at $36,035, up 0.74% in the last 24 hours, but down 6.6% in the last seven days.
Ethereum was trading at $2,686.25, up 0.39% in 24 hours, while dropping 5.07% in the last seven days.
