Helene is a U.S. markets reporter at CoinDesk, covering the US economy, the Fed, and bitcoin. She is a recent graduate of New York University's business and economic reporting program.

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

The latest price declines in cryptocurrencies are inflicting widespread pain on traders who had made leveraged bets in the notoriously volatile markets, resulting in more than $340 million of liquidations just in the past 24 hours.

More than 109,000 traders were hit with liquidations over the past 24 hours as bitcoin dipped below $40,000 on Monday for the first time since September.

According to data from Coinglass, the crypto market saw a total of $343 million in liquidations over the past 24 hours with roughly $94 million happening in the last four hours; nearly $122 million of that was linked to bitcoin trading positions. The highest number of liquidations happened on OKEx, the Seychelles-based exchange, followed by Binance.

The largest single liquidation was on Bitmex, for $5.95 million.

Trading positions linked to ether (ETH), the native cryptocurrency of the Ethereum blockchain, saw $89 million in liquidations.

Liquidations in the crypto market happen when a trader has insufficient funds to fund a margin call – or a call for extra collateral demanded by the exchange to keep the trading position funded. They’re especially common in high-risk trading due to the high volatility of assets. It occurs in both margins and futures trading.

On Monday, bitcoin fell to a three-month low, hitting $39,692.03 after the largest cryptocurrency by market capitalization saw a steady decline, possibly caused by speculation that the Federal Reserve could move quickly to tighten monetary conditions in the face of fast-rising inflation.

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Helene is a U.S. markets reporter at CoinDesk, covering the US economy, the Fed, and bitcoin. She is a recent graduate of New York University's business and economic reporting program.

CoinDesk - Unknown

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

CoinDesk - Unknown

Helene is a U.S. markets reporter at CoinDesk, covering the US economy, the Fed, and bitcoin. She is a recent graduate of New York University's business and economic reporting program.

CoinDesk - Unknown

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.