In the past 24 hours, the cryptocurrency market witnessed contract liquidations reaching 734 million USD, with the largest pressure coming from Long orders.
Data shows that total BTC liquidations dominate with 465 million USD, followed by ETH with nearly 86 million USD, reflecting significant volatility in cryptocurrency derivatives trading.
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Cryptocurrency contract liquidations in 24 hours reached 734 million USD.
The liquidation pressure largely belongs to Long orders with 567 million USD.
BTC and ETH are the two cryptocurrencies with the highest liquidations, at 465 million USD and nearly 86 million USD, respectively.
How is the cryptocurrency market affected by large liquidation events?
Data from Coinglass shows that liquidations in cryptocurrency lead to significant market fluctuations, directly affecting liquidity and price trends. This has been confirmed by market analysts as an important factor in adjusting investor sentiment and risk status.
In the 2023 report, the CEO of a large futures exchange commented:
"The level of cryptocurrency contract liquidations reaching hundreds of millions of USD within 24 hours is evidence of extreme volatility, requiring investors to have stricter risk management strategies."
Mr. Nguyen Thanh Binh, CEO of the derivatives exchange, 2023
Why do Long orders account for a larger share of liquidations compared to Short orders?
Long contracts are often liquidated more in a declining or highly volatile cryptocurrency market, as holders of this position expect prices to rise but must close positions to avoid further losses when prices drop sharply. This is a trend described by global market reports for many consecutive years.
Typically, liquidation pressure from Long orders leads to a temporary price drop, creating momentum for strong capital institutions or whales to accumulate and adjust market demand.
What is the proportion of contract liquidations for BTC and ETH?
Bitcoin and Ethereum are the two leading cryptocurrencies in terms of market capitalization and derivatives trading volume. According to Coinglass, BTC accounts for up to 465 million USD of total liquidations, while ETH ranks second with nearly 86 million USD. This shows that the liquidity and volatility of these two currencies have a decisive impact on the entire market.
The Blockchain 2024 seminar in HN also noted:
"Bitcoin Dominance and Ethereum in the derivatives segment reflect their popularity and central role in the global cryptocurrency ecosystem.
Dr. Le Thi Hong Nhung, Blockchain Expert, Blockchain VN Conference 2024
Comparing BTC and ETH contract liquidations in the past 24 hours
Currency Liquidation Value (USD) Proportion of Total Liquidations (%) Bitcoin (BTC) 465,000,000 USD 63.3% Ethereum (ETH) 85,936,800 USD 11.7%
Frequently Asked Questions
What are liquidations in cryptocurrency? Liquidations occur when positions are automatically closed due to insufficient collateral, especially in positions using high leverage. Why are Long contract liquidations often higher than Short? In declining price trends or volatility, Long orders are more susceptible to liquidation because their price increase expectations do not materialize. How do BTC and ETH affect the derivatives market? These two account for a large share of derivatives trading volume, directly impacting liquidity and market volatility. How can investors minimize liquidation risk? Investors need to apply strict risk management, use reasonable leverage, and set stop-loss orders correctly. What reliable data sources are available to track contract liquidations? Reputable data platforms specializing in the derivatives market like Coinglass and reports from major exchanges are good choices.
Source: https://tintucbitcoin.com/thanh-ly-734-trieu-usd-trong-24h/
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