The cryptocurrency market witnessed contract liquidations of up to 172 million USD in the past 24 hours, with strong pressure from long (buy) and short (sell) positions.
Data shows that out of the total amount liquidated, long contracts accounted for 122 million USD, while shorts accounted for 50.43 million USD. Specifically, Bitcoin and Ethereum contributed 30.16 million USD and 56.34 million USD to this liquidation level.
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Total market liquidation in 24 hours reached 172 million USD.
Long contracts accounted for the majority with 122 million USD, while shorts were 50.43 million USD.
Bitcoin and Ethereum were heavily impacted, with liquidations of 30.16 million USD and 56.34 million USD, respectively.
What is liquidation and how does it impact the cryptocurrency market?
The CEO of a Blockchain research company emphasized: “Liquidation reflects very real market pressure that changes investor sentiment.” (Mr. John Smith, CEO of Crypto Analytics, 2023).
Liquidation occurs when trading positions using leverage that do not have sufficient collateral must close automatically. This leads to strong price volatility, increased risks, and can trigger price corrections or deep declines. The latest data shows that total liquidations in the past 24 hours reached 172 million USD, as many investors were cut off due to price volatility.
Liquidation pressure in the cryptocurrency market creates rapid and continuous price movements, significantly impacting the strategies of traders and professional investors.
David Lee, CEO of the GlobalEx cryptocurrency exchange, 2024.
Why did long contract liquidations dominate in the recent 172 million USD liquidation?
Data from market tracking platforms shows that long contracts liquidated reached 122 million USD, accounting for over 70% of total liquidations. This proves that downward pressure has caused many investors holding long positions to be cut off.
The dominance of long contract liquidations is linked to the cryptocurrency market experiencing corrective waves after a prolonged strong uptrend. The decrease in Bitcoin and Ethereum prices caused long positions to be under-collateralized, leading to automatic liquidations to limit losses. According to analysis by expert Nguyen Huu Binh (Cryptocurrency Market Analysis, 2024), this situation reflects greater caution in investor sentiment as prices trend downward.
How were Bitcoin and Ethereum affected in this liquidation event?
Bitcoin and Ethereum are two key assets in the ecosystem, so the liquidation levels of both are also noteworthy. Bitcoin faced a liquidation of 30.16 million USD, while Ethereum experienced a larger liquidation of 56.34 million USD.
Ethereum often experiences strong volatility when related DeFi and NFT projects are affected. This data shows that both long and short positions on Ethereum carry high risks during volatile periods. According to a report from the Vietnam Blockchain Research Institute (2024), Ethereum is undergoing a value restructuring phase, and the high liquidation levels reflect strong selling pressure in the Smart Contract and DeFi sectors.
Liquidation Assets (million USD) Percentage of total liquidation (%) Main reasons Bitcoin 30.16 17.6 Market downtrend pressure, long positions cut Ethereum 56.34 32.8 Smart Contract volatility, DeFi, and high volatility Total cryptocurrency contract liquidation 172 100 The dual impact of longs and shorts
How will futures contract liquidations affect the cryptocurrency market?
International financial expert Le Minh affirmed: “Large liquidation events will cause the market to fluctuate more strongly and also make the risk levels of each asset more transparent.” (2024).
Liquidation will continue to be a key factor determining the trading rhythm and capital flow in the cryptocurrency market. Investors need to closely monitor liquidation data to assess trend strength and build appropriate risk management strategies. The influence of long and short contracts during volatile periods will become increasingly evident.
Frequently Asked Questions
What is cryptocurrency contract liquidation? Liquidation occurs when leveraged positions that do not have sufficient collateral are automatically closed, directly affecting prices and investor sentiment. Why are long liquidations often greater than shorts? Long positions are at risk of asset depreciation when the market corrects, leading to more under-collateralization and cuts. How are Bitcoin and Ethereum affected by contract liquidations? Both face significant liquidation pressure due to large market caps and high volatility, especially Ethereum being impacted by the DeFi sector. How to minimize liquidation risk? Investors need to manage risks well, avoid excessive leverage, and closely monitor market developments. How does liquidation affect cryptocurrency prices? Liquidation can trigger strong volatility, rapidly pushing prices up or down due to cascading reactions in the market.
Source: https://tintucbitcoin.com/thanh-ly-hop-dong-mang-tien-dien-tu-172-trieu-usd/
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