According to the data, the cryptocurrency sector has witnessed a huge amount of liquidation after the crash that Bitcoin and the company experienced.
Crypto DerivativeS Market has seen a long aperture
According to Coinglass data, a large amount of liquidation related to the cryptocurrency contract has occurred in the derivative platform during the past day. The “liquidation” here refers to a powerful closure that the contract that has been opened by the replacement has been accumulated after accumulating a certain amount of loss (the accuracy ratio depends on the platform).
There are two main factors that can have a significant impact on the possibility of finding a liquidation. The first thing is volatility. Assets that tend to be volatile are difficult to predict naturally, so the risk of liquidation may increase.
Volatility is not actually in the hands of individual traders, but leverage, the second factor, is the case. “Leverage” is the loan amount that investors can choose for the first position.
The advantage of leverage is that the profits acquired by the owner have the same riding as leverage. This may sound advantageous, but it is also true that the losses will increase in the same size. Therefore, in order to liquidate when the leverage is in the photo, the same position is settled, so a small price is required in the opposite direction to the bet.
In the cryptocurrency sector, coins often show volatility, and speculative demand may be strong. As a result, a mass liquidation event that is generally known as a squeeze occurs regularly.
It is not surprising to see that Bitcoin and Altcoins display some sharp price actions in the past, so it is not surprising that such events occurred in the derivative market.
The data for the liquidations that have taken place during the last 24 hours | Source: CoinGlass
As you can see in the table above, the liquidation of the entire cryptocurrency derivative sector has exceeded $ 2.32 billion in the past 24 hours. This is a big person, even in market standards.
A total of about $ 1.93 billion, which is equivalent to more than 83 %, is involved in long holders. It makes sense that Bitcoin and others have crashed in this window, so those who bet on bullish results are the most affected.
Still, shorts are not completely spare. The 387 million dollar positions related to them are closed by the rebound from the low price.
Interestingly, Bitcoin is generally the top of the liquidation list, but instead Ethereum (ETH) first comes and the contract related to the event is about $ 613 million.
The breakdown of the latest liquidations by symbol | Source: CoinGlass
ETH is the fact that it is much larger than the number one cryptocurrency, which is much larger in the past day, much larger in the past day, which is much larger. there is.
Bitcoin price
Bitcoin has seen some recovery since the price floats around $ 95,300 and has entered the $ 92,000 mark.
Looks like the price of the coin has gone through a rollercoaster in the past day | Source: BTCUSDT on TradingView
Attention images of Dall-E, Coinglass.com, chart of TradingView.com
