In February, the cryptocurrency market faced a wave of liquidations that had a significant impact on leading assets such as Bitcoin (BTC) and Ethereum (ETH).
Overview of Crypto Market Liquidations
This February, over $809 million in positions were liquidated, affecting both short and long positions. The pressure on BTC pushed it below the $88,000 mark, with liquidation volumes reaching $1.48 billion within 24 hours.
Bybit's Role in the Liquidations
During the recent market crash, Bybit managed to repay its loans thanks to excess liquidity in stablecoins. Bybit acquired 212,101 ETH through OTC deals at a reduced price over the past 24 hours, speeding up the loan repayments.
Consequences for Traders and Exchanges
Bybit led the liquidations, raising suspicions of market manipulation. Traders with long positions faced risks related to price drops and the potential for significant sales from whales.
The February liquidations demonstrated the market's vulnerability to large capital movements and emphasized the importance of risk management strategies for traders and exchanges.
