This news reveals that the cryptocurrency market has experienced significant volatility in the last 24 hours, resulting in the liquidation of $200 million in contracts.

Description:

Long Positions:

Those who hoped that prices would rise had their positions liquidated, resulting in a loss of $130 million.

Short Positions:

Investors who expected prices to fall were also affected, with losses reaching $70.07 million.

Meaning of Liquidation:

When a trader's position incurs losses to the extent that the funds in their margin can no longer sustain it, the exchange automatically closes that position to prevent further losses. This is known as liquidation.

Possible Reasons:

A sudden large movement in the price of a major crypto like Bitcoin or Ethereum

FUD (Fear, Uncertainty, Doubt) in the market

Significant economic news or regulatory announcements

What it means for traders:

Caution is essential when engaging in margin trading.

Using stop-loss and keeping leverage limited is a safe strategy.

If you want, I can explain how these liquidations happen and how you can protect your investments from them?