#CryptoCPIWatch Traders lost $500 million in a day during the correction of the cryptocurrency market

The total capitalization of cryptocurrencies decreased by 3% in a day, but investor sentiment still indicates their interest in purchasing digital assets.

Crypto traders lost over $500 million in liquidations of leveraged positions in a day amid the market correction. The price of bitcoin (BTC), which rose to $106,000 on the morning of May 12, fell to $101,000 by the evening of the same day, and the total capitalization of cryptocurrencies decreased by approximately 3% over 24 hours.

Cryptocurrency exchanges liquidated the positions of 201,000 traders in the last 24 hours for a total of $659 million, according to Coinglass. Of this amount, $517 million was related to the positions of those betting on the rise of cryptocurrencies.

Liquidations occur when the price moves against a trader's leveraged position, and the exchange forcibly closes it at a loss due to insufficient collateral.