In the past 24 hours, the cryptocurrency market recorded a total of 102 million USD in liquidated contract value, with liquidation pressure primarily stemming from short positions.
The latest data indicates that long position liquidations account for about 32 million USD, while short position liquidations amount to nearly 70 million USD. Bitcoin and Ethereum are the two currencies most affected by liquidations, with nearly 15.2 million USD and 30 million USD in contract value, respectively.
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The total value of cryptocurrency contract liquidations in the past 24 hours reached 102 million USD.
Short position liquidations dominate with nearly 70 million USD, surpassing long positions.
Bitcoin and Ethereum are the two currencies that have faced the most liquidations, with 15.2 million USD and 30 million USD, respectively.
What is the overview of contract liquidation pressure in the cryptocurrency market over the past 24 hours?
Data from Coinglass shows that the total liquidation of cryptocurrency contracts in the past 24 hours increased to 102 million USD, with the majority coming from short positions, indicating an increase in bearish market pressure. This reflects high sensitivity and volatility in short-term investment behavior in the current cryptocurrency market.
Liquidation pressure mainly comes from short contracts, reflecting a pessimistic sentiment in some segments of the cryptocurrency market recently.
Market Analysis Director, Crypto Insights, July 2024
Why do short position liquidations dominate over long positions?
According to surveys and expert assessments, short position liquidations dominate as many investors bet on the likelihood that the cryptocurrency market will decline. However, the mass liquidation of short positions indicates that investors have been caught up in sudden price surges, leading to large automatic cut-loss reactions.
Analysis of short-term pump events shows that short liquidations often occur when prices surge sharply, forcing investors to sell off to avoid greater risks.
How are Bitcoin and Ethereum impacted by this liquidation event?
Bitcoin and Ethereum are the two assets most deeply affected, with 15.2 million USD and nearly 30 million USD in liquidated contracts, respectively. This affirms the central position of the two largest cryptocurrencies in the cryptocurrency ecosystem, which also means greater liquidity and volatility.
Cryptocurrency Liquidation Value (million USD) Percentage of Total Liquidation (%) Bitcoin 15.1862 14.91 Ethereum 29.9913 29.43 Others (Altcoins and Tokens) 56.8225 55.66
Ethereum continues to exhibit higher volatility with nearly 30 million USD in liquidated contract value, indicating that liquidity and investor participation remain very high.
Mr. Nguyen Van Hoa, cryptocurrency finance expert, 2024
What factors increase liquidation risks in the cryptocurrency contract market?
Factors such as high price volatility, significant financial leverage, negative market news, and FOMO sentiment are the main causes driving increased liquidation risks. Research from several market analysts indicates that liquidations often occur when investors use high leverage in an unstable market.
This raises the issue of risk management, such as limiting leverage and closely monitoring price fluctuations is essential to minimize losses.
What are effective risk management strategies in the face of significant liquidation pressure?
Optimal risk management includes reasonable capital allocation, using planned stop-loss orders, avoiding excessive leverage, and continuously monitoring the market. Market experts recommend that investors prioritize moderate leverage use and diversify their portfolios to minimize extreme impacts when liquidations occur.
How to distinguish between Long and Short positions in cryptocurrency contract liquidation?
A Long position is when the investor expects the price to rise, while a Short position bets on a price decline. Liquidation occurs when the market goes against expectations, forcing the contract to close at a loss. According to Coinglass data, short liquidations are predominant, reflecting a sudden price rise that forces short sellers to cut losses quickly.
Frequently Asked Questions
1. What is contract liquidation in the cryptocurrency market? Contract liquidation occurs when an investor's position is forced to close due to insufficient margin, resulting in asset reduction. 2. Why are short positions liquidated more often? Short positions are liquidated more often due to unexpected price increases that lead short sellers to be margin called and forced to close their positions. 3. How do Bitcoin and Ethereum react to significant liquidations? These two assets often have high liquidity and strong price fluctuations, increasing the risk of significant liquidations in the contract market. 4. How to avoid contract liquidations when trading cryptocurrencies? Good risk management, limiting leverage, setting stop-loss orders, and closely monitoring the market can help minimize liquidations. 5. What is the impact of contract liquidations on the cryptocurrency market? Massive liquidations can cause sudden price volatility, affecting investor sentiment and market stability.
Source: https://tintucbitcoin.com/thanh-ly-hop-dong-tien-dien-tu-102-trieu/
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