Thousands of traders have suffered losses due to recent turmoil in the cryptocurrency market caused by armed conflict in the Middle East.
According to Coinglass, over the past 24 hours, long and short positions on the purchase of digital assets worth $471.38 million have been liquidated. A total of 124,421 cryptocurrency traders had to count their losses, and the biggest loss was suffered by a client of the exchange #Binance , who placed an order in the Ethereum market worth $12.14 million.
Liquidation of positions on the purchase of digital assets
Due to the dump in the price of Bitcoin and other cryptocurrencies caused by the US attack on facilities in Iran, long positions were closed, and as a result of the subsequent unexpected rise in the price of coins and tokens following the news of a ceasefire between Iran and Israel, short positions were liquidated. Consequently, traders who predicted both a decrease and an increase in the value of the coins went into the negative.
This situation reflects the risks of trading virtual currencies, the direction of whose exchange rates is sometimes impossible to predict. Therefore, instead of buying and selling digital assets in pursuit of immediate profits, one can 'HODL' them, meaning to hold onto them for an extended period. For example, Bitcoin, which has low volatility by cryptocurrency standards, has increased in price by 66% over the past year, thus providing substantial profits for patient investors.
