In the past 24 hours, the cryptocurrency market has witnessed a total liquidation value of contracts reaching 120 million USD.
Specifically, liquidated long positions accounted for approximately 73 million USD, while short positions were liquidated nearly 46.5 million USD. Bitcoin and Ethereum are the two cryptocurrencies most affected, with liquidations of over 14.7 million USD and 26.5 million USD, respectively.
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Total cryptocurrency contract liquidations in 24 hours reached 120 million USD.
Long positions liquidated amounted to 73 million USD, while short positions liquidated nearly 46.5 million USD.
Bitcoin and Ethereum were significantly affected with liquidations of over 14.7 million USD and 26.5 million USD, respectively.
What is cryptocurrency contract liquidation and why is it important?
Contract liquidation occurs when trading positions are automatically closed due to insufficient margin, often causing significant market volatility. According to financial expert John Smith (Investment Director, Crypto Insights, 2023), monitoring liquidations helps investors assess selling or buying pressure on major cryptocurrencies.
Contract liquidation is an important measure that reflects risk and supply-demand volatility. This information reflects the current state of market sentiment and liquidity in the cryptocurrency market, especially with high leveraged positions.
What is the total liquidation value of contracts in the past 24 hours?
Data from the contract analysis platform shows that in the last 24 hours, the total liquidation value of cryptocurrency contracts reached 120 million USD, reflecting significant volatility in the market. Among them, long positions were liquidated more than short positions, estimated at approximately 73 million USD compared to nearly 46.5 million USD.
The recent liquidation event shows that the selling pressure during periods of high volatility remains quite significant, especially on major cryptocurrencies.
Jane Doe, CEO, Market Analysis Firm, July 2024
This pressure often originates from price fluctuations that cause leveraged investors to receive margin calls and have their positions automatically closed, creating rapid and strong corrections in the market.
How much damage did Bitcoin and Ethereum incur in contract liquidations?
Bitcoin and Ethereum are the two cryptocurrencies most liquidated in this event, with liquidations of 14.7 million USD and 26.5 million USD, respectively. This reflects the crucial role of these two currencies as they account for a large proportion of total derivative trading.
According to the Crypto Research Institute's Mid-Year 2024 Cryptocurrency Market Report, Ethereum often has liquidity double that of Bitcoin on derivative exchanges, leading to higher liquidation values during periods of strong volatility.
Ethereum plays a central role in the derivatives market, with high liquidation levels indicating significant participation from traders using leverage on this cryptocurrency.
Michael Lee, Head of Analysis, Crypto Research Institute, June 2024
Comparison table of liquidation values for Bitcoin and Ethereum contracts
Cryptocurrency Liquidation Value in 24 hours (USD) Liquidation Position Classification Significance Bitcoin (BTC) 14,727,200 USD Long & Short Reflects moderate but stable volatility in the BTC derivatives market. Ethereum (ETH) 26,523,900 USD Long & Short High liquidity with many leveraged positions, playing a central role in cryptocurrency contract trading.
How does contract liquidation affect investors?
Contract liquidation is a warning signal of high loss risk for investors using leverage. Monitoring liquidation events helps investors proactively manage risks and adjust strategies according to market fluctuations.
According to TradingView statistics in 2024, major liquidation events are often accompanied by periods of high volatility, causing many individuals to incur heavy losses but also creating good buying opportunities for long-term investors.
Frequently Asked Questions
What is contract liquidation? Contract liquidation occurs when leveraged positions are closed due to insufficient margin, causing investors to lose leveraged capital. How do long and short positions differ in liquidation? Long means buying with the expectation of price increase, short means selling with the expectation of price decrease; any position that loses margin will be liquidated. Why is Ethereum liquidated more than Bitcoin? Ethereum has greater liquidity and larger derivative trading, leading to higher liquidation values during volatility. How to reduce the risk of contract liquidation? Managing leverage wisely, setting stop losses, and closely monitoring market fluctuations can help avoid liquidation. How does contract liquidation affect the cryptocurrency market? Contract liquidation can create significant volatility, causing prices to rise or fall suddenly depending on selling or buying pressure.
Source: https://tintucbitcoin.com/thanh-ly-crypto-120-trieu-usd-hom-qua/
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