In the last 24 hours, a significant liquidation event occurred in the global crypto market, totaling $228 million, which has substantially affected Bitcoin and Ethereum traders.
Global Crypto Market Liquidations
According to ChainCatcher, using data from Coinglass, a total of $228 million was liquidated. This event impacted both short and long positions on major crypto exchanges, including a $2.79 million liquidation in the BTCUSDT market on Binance.
Increased Volatility Risks for Bitcoin and Ethereum
High market volatility has led to the liquidation of 93,663 traders globally. The last significant liquidation episode occurred in May when $204 million was liquidated, indicating recurring volatility in the crypto market. Currently, Bitcoin is trading at $119,254.45 with a market cap of $2.37 trillion.
Potential Consequences for Crypto Investors
Research indicates that high leverage usage can have significant implications for trading positions in derivatives markets. Increased volatility may necessitate stricter regulatory interventions, potentially affecting investor behavior in the crypto space.
Recent liquidations in the crypto market highlight the risks associated with high volatility and leverage usage, prompting investors to adopt a more cautious approach.
