In the past 24 hours, the crypto market faced massive liquidations exceeding $1 billion. This situation affected over 241,000 traders, particularly impacting Bitcoin and Ethereum positions.
Overview of Liquidations
Massive liquidations reached over $1.14 billion within one day, highlighting severe market volatility. The bulk of these occurred on major exchanges like Binance, indicating high risks in leveraged trading.
Main Affected Positions
Among the liquidated positions, BTC and ETH long positions predominated. One of the largest liquidations was recorded on Binance, totaling over $200 million for BTCUSDT. "BTC saw a literal tsunami of long liquidations totaling $415 million – compared to just $28.69 million in shorts – a 1,446% imbalance between the two sides ... More than 241,000 traders were affected. The biggest single liquidation? A $201 million BTCUSDT long on Binance," - stated CoinGlass.
Causes and Consequences
The sudden downturn in the crypto market led to forced position closures for over a quarter million traders, with long positions suffering significantly. This situation revealed a client imbalance in the market, as many traders pursued a bullish strategy. The liquidation wave also resulted in dramatic price swings, creating risks for investor confidence. Historically, such liquidation waves often follow notable macroeconomic shocks or exchange incidents.
Recent events in the crypto market indicate a need for a deeper analysis of the factors contributing to drastic changes and liquidations. Given the current conditions, further volatility in the market can be anticipated.
