Many cryptocurrencies dropped below the support levels resulting in crypto future traders experiencing a loss of over $400 million on Wednesday. This outcome comes after the hawkish comments from the U.S. Federal Reserve.

Third Highest Liquidation in 2022

In addition, the liquidation figures were the third-highest of 2022, following nearly a billion dollars worth of losses caused by liquidations on 21 January and $470 million on 22 January. And at that time, the bitcoin’s price fell from $47,000 to $42,500.

Liquidation occurs when an exchange forcefully closes a trader’s leveraged position as a safety mechanism due to a partial or total loss of the trader’s initial margin. This event happens mainly in futures markets, where traders may not have access to the assets until settlement.

Futures tracking Solana (SOL) and Dogecoin (DOGE) saw a joint liquidation amount of $40 million lost, the highest among significant cryptocurrencies except bitcoin and ether. On the other hand, GMT tokens of StepN were an unusual entrant on the list with $9 million in recorded losses.

DOGE and GMT were top gainers last week. Elon Musk’s Twitter appointment influenced the price of DOGE, while StepN earned the popularity of traders for its unique step-to-earn approach.

Bitcoin futures hit $92 million in losses, the highest figure among all cryptocurrencies. Furthermore, ether futures lost $64 million and the losses continued in Asian hours on Thursday, with over $40 million in recorded liquidations.

Binance Traders Top Liquidation Pool

Additionally, Coinglass analysis shows that most liquidations too place on Binance, with over $133 million in losses. Moreover, traders on OKX and FTX face the subsequent highest losses with $100 million and $68 million, respectively.

83% of all traders took a long position, expecting the crypto price to rise following a bitcoin drop to support at $45,000 on Wednesday. Nevertheless, the asset fell by 5% since then and currently trades at $43,500.