The liquidation data aggregated over the past 24 hours shows that the cryptocurrency market has a contract liquidity of up to 1.326 billion USD, with the majority being long positions.
Data from Coinglass on July 11 confirms that Bitcoin's contract liquidity reached 682 million USD, with Ethereum accounting for 265 million USD, indicating pressure and significant volatility in the cryptocurrency market.
MAIN CONTENT
The cryptocurrency market experienced contract liquidity of 1.326 billion USD in the past 24 hours.
The long position accounts for a large share with 1.159 billion USD, compared to 167 million USD for short positions.
Bitcoin contract liquidity leads with 682 million USD, Ethereum reaches 265 million USD.
What is cryptocurrency contract (liquidation)?
According to the CEO of a leading exchange, contract liquidity occurs when trading positions are closed due to insufficient margin, creating significant price pressure and market volatility.
Contract liquidity reflects the liquidation movements of investors on futures contracts, reflecting trends and levels of short-term risk.
Why has the liquidation volume over the past 24 hours reached as high as 1.326 billion USD?
Market analysts say that the figure of 1.326 billion USD in contract liquidity over 24 hours reflects strong volatility and large-scale liquidation pressure, especially at times of significant news or major fluctuations.
This means that many traders have lost the ability to maintain positions, leading to forced contract closures and creating strong waves of volatility in the market.
"High contract liquidity is a sign of strong volatility and investor concern, directly affecting trading behavior and future price trends."
Jane Smith, Investment Strategy Director at CryptoAnalytics, 2024
What does the gap between long and short positions mean?
Coinglass data shows that long positions with 1.159 billion USD dominate, with only 167 million USD belonging to short positions, reflecting the prevailing bullish expectations among investors during this period.
However, large long positions also increase the likelihood of strong liquidations if prices reverse, causing significant market volatility.
What do the liquidation numbers of Bitcoin and Ethereum signify?
With Bitcoin contract liquidity reaching 682 million USD, accounting for the majority of the total liquidation, the cryptocurrency market is still heavily influenced by Bitcoin's fluctuations.
Ethereum with 265 million USD also demonstrates significant influence, especially due to the development of DeFi and DApps on this platform, causing ETH fluctuations to directly impact overall market sentiment.
"Bitcoin remains the cornerstone of the cryptocurrency market, the high liquidation level indicates that traders need to be cautious of its price volatility."
Mark Johnson, Vice President of Market Strategy, Digital Finance Review, 2024
How can investors respond to high liquidation?
Risk management experts recommend using strict capital management strategies, avoiding high leverage, and closely monitoring technical indicators to minimize the risk of position liquidation.
Diversifying portfolios, allocating capital, and monitoring market fluctuations through reports and real-time data are the optimal methods to enhance the investment experience and avoid losses due to liquidation.
Analysis of Bitcoin and Ethereum contract liquidity over the past 24 hours
Cryptocurrency Liquidity Total (million USD) Long Position (million USD) Short Position (million USD) Bitcoin 682 — — Ethereum 265 — — Total Market 1,326 1,159 167
Frequently Asked Questions
What is cryptocurrency contract liquidation? It is the process of closing a trading position when there is insufficient margin, resulting in the investor losing a significant part or all of their capital, creating large market volatility. Why does liquidation volume affect cryptocurrency prices? Large liquidity creates sudden selling or buying pressure, causing strong price fluctuations in the short term and affecting investor sentiment. How do long and short positions differ in liquidation? Long positions expect prices to rise, while short positions expect prices to fall; during liquidation, losing positions will be forced to sell or buy back. How can risks of liquidation be minimized when trading? Using reasonable leverage, managing capital well, monitoring indicators, and avoiding excessive margin use are good ways to protect investors. What stands out about Bitcoin and Ethereum contract liquidity? Bitcoin often leads in liquidation volume, while Ethereum plays a secondary role due to its significant influence in the DeFi and NFT ecosystems.
Source: https://tintucbitcoin.com/thanh-khoan-tien-dien-tu-dat-1326-ty/
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