Author: Krisztian Sandor, CoinDesk; Compiler: Songxue, Jinse Finance

Cryptocurrency traders have lost $1 billion in liquidations** in the past 24 hours, Coinglass data shows, as the digital asset market suffers one of the worst sell-offs of the year, with bitcoin falling to two-month lows . **

Bitcoin, the largest native cryptocurrency, plunged 7% to about $26,900 after falling to nearly $25,000 earlier in the day, its lowest level since June.

According to CoinGlass, roughly $821 million in long positions (traders betting on rising prices) was wiped out in the rush to exit. Bitcoin (BTC) traders were the first to suffer long-term liquidations of $472 million, followed by Ethereum (ETH) with losses of $302 million.

According to Coinalyze data, this is the largest single-day liquidation level of BTC since June 2022, when the price of the main cryptocurrency plummeted to $17,000.

Liquidations in the last 24 hours (Coinglass):format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/T5CZSFYZDZDRTICVYMBCH4QLKU.png)

Liquidation volume in the past 24 hours (Coinglass)

The liquidation came as cryptocurrency prices fell through a trough in U.S. hours on Thursday afternoon, turning a slow decline this month into a bloodbath, with financial markets buoyed by a crash in foreign exchange, worries about the Chinese economy and rising bond yields. Uneasy to multi-year highs. Major cryptocurrencies like BTC and ETH are down near double digits, falling to their lowest levels since early summer. **

Liquidation occurs when an exchange closes a leveraged trading position due to the loss of some or all of a trader's initial capital, or "margin," if the trader fails to meet margin requirements or has insufficient funds to maintain the trade. This dynamic can trigger a cascade of liquidations when asset prices plummet, exacerbating losses and falling prices.