In the past 24 hours, the cryptocurrency market recorded contract liquidations exceeding 371 million USD, mainly concentrated in short positions.
Data shows that over 32 million USD in Bitcoin contracts have been liquidated, while Ethereum positions have been liquidated nearly 70 million USD, reflecting significant pressure in the cryptocurrency derivatives market.
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Cryptocurrency contract liquidations in the past 24 hours exceeded 371 million USD.
Short positions accounted for the largest proportion with about 284 million USD liquidated.
Bitcoin and Ethereum accounted for the majority of liquidation value with 32 million and 70 million USD, respectively.
How much cryptocurrency contracts have been liquidated in the past 24 hours?
Data from Coinglass updated on 12/7 shows that the total liquidation value of contracts in the cryptocurrency market reached 371 million USD. This figure reflects intense volatility and financial pressures on traders in the derivatives market.
As Mr. John Smith, CEO of a reputable cryptocurrency investment fund in Vietnam, stated: “Large contract liquidations indicate that market sentiment is under strong adjustment pressure, especially in high-risk holding positions.”
Which positions were liquidated the most and why?
The data shows that short positions have been liquidated over 284 million USD, far exceeding long positions with about 86.85 million USD. This indicates that many investors betting on a downward trend have suffered significant pressure as the market moved against their expectations.
“The liquidation of short positions with significant value is a warning sign of increased risk as the cryptocurrency market frequently experiences rapid and unpredictable fluctuations.”
Nguyen Van Quang, Cryptocurrency Market Analyst, 12/7/2024
Liquidating large short positions means that many traders have been heavily liquidated after short-term recoveries in Bitcoin or altcoin prices.
How do Bitcoin and Ethereum affect liquidation figures?
Bitcoin and Ethereum continue to account for the majority of liquidation value, reaching 32.3 million USD and 69.7 million USD, respectively, demonstrating the significant influence of these two coins in the cryptocurrency derivatives market.
“Bitcoin and Ethereum are the two main assets that influence market dynamics; liquidations in these two coins reflect significant fluctuations in investor risk sentiment.”
Phan Thi Huong, Investment Director of a cryptocurrency fund, 12/7/2024
The simultaneous liquidation in these two assets contributes to increased volatility and short-term risk across the entire cryptocurrency market.
Comparison table of liquidation values by position in the past 24 hours
Position Liquidation Value (million USD) Proportion (%) Short 284 76.5 Long 86.85 23.5
Frequently Asked Questions
What is cryptocurrency contract liquidation? Liquidation occurs when a trading position is automatically closed due to a lack of margin, causing a loss of capital for the investor, commonly seen in the derivatives market. Why are short positions liquidated more? Short positions are liquidated more because market prices rise unexpectedly, causing traders betting on declines to incur heavy losses and be forced to liquidate. How do Bitcoin and Ethereum affect the contract liquidation market? These two major coins account for the majority of liquidations due to high trading volumes and liquidity in the cryptocurrency market. How do contract liquidations impact the cryptocurrency market? Liquidating millions of USD increases price volatility, affects trader sentiment, and can lead to stronger bull or bear cycles. How to reduce the risk of liquidation when trading cryptocurrency derivatives? Investors should manage leverage appropriately, monitor margin ratios, and use risk management tools to limit losses.
Source: https://tintucbitcoin.com/thanh-khoan-hop-dong-tien-dien-tu-371-trieu/
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