The crypto market is under pressure from a sudden liquidation wave. In just 24 hours, over $287 million were liquidated, highlighting market volatility and risks of using positions.

Major Cryptocurrencies Under Pressure

This liquidation wave primarily hit major crypto exchanges: OKX and Binance reported liquidations worth $120.37 million and $132.55 million, respectively. The most affected cryptocurrencies were Ethereum and Bitcoin, with $66.52 million in Ethereum positions (approximately 25,390 ETH) and $80 million in Bitcoin positions (equivalent to 1,180 BTC) wiped out.

Reasons for Market Volatility

This was not an isolated incident. The crypto market has been experiencing significant volatility in recent weeks due to regulatory issues and macroeconomic factors. In the last 24 hours, over $292 million in liquidations were recorded, with long positions making up 77.91%.

Prospects of the Crypto Market

The largest single liquidation order occurred on OKX, where a $6.55 million ETH-USDT position was eliminated in seconds. This incident highlights the extreme risks traders face using high leverage in volatile markets. Crypto analyst Miles Deutscher described it as a double-edged sword, leading to severe losses while potentially amplifying gains. MN Trading founder Michaël van de Poppe remains hopeful about the long-term prospects of the crypto market. He believes investors should remember the cyclical nature of the market, and such events create opportunities for those who manage their risks well.

The crypto market remains highly volatile, presenting both risks and opportunities for seasoned traders. Despite current instability, some analysts see potential in the long run.