Optimistic long bets on crypto derivatives have once again come at a considerable cost to traders following a $1.93 billion wipeout over the past 24 hours.

The total crypto market cap is down over $70 billion amid a massive slump in prices of nearly all virtual assets with Bitcoin (BTC) retreating below the $17,000 mark.

According to the crypto data aggregator bybt, total crypto derivative liquidations across exchange platforms over the past 24 hours is over $1.93 billion.

Many traders were likely caught up in the bullish euphoria and entering over-leveraged long positions.

Binance reportedly recorded $866 million in liquidations which amounts to almost 45% of the total sum. Over 94% of the liquidations on Binance were from long positions as cryptocurrency prices tanked on Thanksgiving day.

Open interest (OI) on Binance is down over 20% as well as on other derivative platforms like FTX and Bybit. This OI decline provides further evidence of an increase in over-leveraged longs on exchanges before Thursday’s price drop.

Perhaps indicative of the BitMEX decline in recent times, only $145 million (7.54%) of the total liquidations happened on the platform. In the past, BitMEX used to be the pantomime villain as far as crypto liquidations were concerned.

Of the $1.93 billion liquidation total, about $1.04 billion were from Bitcoin derivatives that saw traders lose over 62,000 BTC in the process. Ethereum (ETH) derivatives own the largest share of altcoin liquidations with a wipeout of about 770 ETH worth approximately $380 million.

At the time of press, the total crypto market capitalization is down by over 15%. The cryptocurrency market value has lost about $70 billion in the last 24 hours as Bitcoin and altcoins experienced significant corrections.

After flying to a two year high of $0.90, XRP is now down to the $0.50 price mark. ETH and Litecoin (LTC) also posted double-digit percentage drops in the last 24 hours with the broader altcoin market firmly in the red.

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