Major Liquidation Wave Hits Crypto Market as $435 Million Vanishes

The cryptocurrency market saw a significant surge in volatility, leading to massive liquidations of leveraged positions.

Over $435 million in positions were liquidated in the past 24 hours. About $320 million came from short positions, while $115 million came from long positions. Ethereum topped the liquidation chart with nearly $150 million, followed by Bitcoin and Solana, which also faced substantial liquidation. This unusual pattern, where shorts dominated, indicates that a sharp price surge caught many traders off guard.

Large-scale liquidations usually lead to larger price movements. When positions close due to forced liquidations, it can create more volatility. If shorts are liquidated during a price increase, it can actually push prices higher through a "short squeeze" effect. This situation highlights the risks of using high leverage in unpredictable markets and reminds traders about the importance of managing risk effectively.

How do you adjust your leverage strategy during high-volatility periods?

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