The cryptocurrency market experienced a sudden dip earlier today, leading to a significant increase in liquidations. However, the downtrend appears to be easing.

According to data provided by CoinGlass, over $178 million have been liquidated from the crypto market in the past 24 hours, marking a 292% increase. Bullish traders holding long positions faced most of the losses, amounting to $153 million.

The total open interest in the crypto ecosystem declined by 2% in the past 24 hours and is currently hovering at $55 billion. Data indicates that most of the liquidations occurred in retail traders’ positions, with the largest single liquidation, worth $2 million, happening on the OKX exchange.

Ethereum is leading the chart with $55 million in liquidations, followed by Bitcoin at $35 million.

The massive liquidations led to a dip in the crypto market. The global cryptocurrency market capitalization declined by 3.6% in the past 24 hours and is now sitting at $2.14 trillion, according to data from CoinGecko.

Bitcoin dropped to an intraday low of $58,150 but soon regained momentum to the $59,000 mark. According to CryptoQuant, the number of Bitcoin addresses depositing into exchanges has dropped to 132,100 — a level last seen in 2016.

“A low value suggests a decrease in the number of investors selling coins on spot exchanges, potentially indicating a reduction in selling pressure.”

This indicator shows that the number of holders selling BTC has significantly decreased, hinting at declining selling pressure and lower price volatility.

Per a crypto.news report on Sept. 15, over $1.3 billion worth of BTC left centralized exchanges last week. Bitcoin’s on-chain movements and indicators show potential bullish momentum. However, macro events could still shift the market direction despite the bullish investor sentiment.

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