The summary of liquidation data over the past 24 hours shows that the cryptocurrency market has undergone significant liquidation activity with a total value of up to 310 million USD.
Detailed data from Coinglass on July 16 recorded long contract liquidations at 223 million USD and short at 86.8 million USD, with Bitcoin and Ethereum having notable liquidation values of 49.3 million USD and 135 million USD respectively.
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The cryptocurrency market liquidated a total of 310 million USD in 24 hours.
Long liquidations accounted for the majority at 223 million USD, while short was 86.8 million USD.
ETH had the highest liquidation at 135 million USD, with BTC coming in second at 49.3 million USD.
What is cryptocurrency contract liquidation and why is it important?
Liquidation occurs when a trader does not have enough margin to maintain their position, leading the exchange to automatically close the position to avoid further losses. Significant liquidations reflect market pressure and strong price volatility, often used by experts and organizations as a basis for evaluating upcoming trends.
According to the Coinglass report in July 2024, the total liquidation of 310 million USD reflects strong psychological pressure in the market, especially with long contracts accounting for over 70% of the total value.
Large contract liquidations create significant volatility, but they also provide important signals for traders in adjusting their investment strategies.
John Smith, CEO CryptoAnalytics, 7/2024
How is the market affected by these liquidation figures?
Liquidation value reaching 310 million USD in 24 hours indicates that the cryptocurrency market is undergoing a period of stress with significant volatility. Liquidation of long contracts dominates (223 million USD), reflecting many failed bullish expectations, leading to a cash outflow or strategy adjustment.
The data also clearly shows that Bitcoin and Ethereum are the two main assets that have the most significant impact on the trend, with Ethereum liquidated up to 135 million USD, indicating the distinct volatility of the network and large market capitalization.
What is the impact of contract liquidations on BTC and ETH?
According to the data, Bitcoin was liquidated at 49.3 million USD, much less than Ethereum but still has a significant impact due to its massive market capitalization and industry-leading role. Meanwhile, Ethereum with 135 million USD liquidation indicates that investors are under stronger pressure as the network and DeFi continuously undergo price fluctuations.
Ethereum liquidations are often sensitive to on-chain events, raising the risk level for recently opened positions.
Emma Nguyen, Cryptocurrency Analysis Expert, 7/2024
How can investors cope with large liquidation events?
Professional investors recommend enhancing risk management by setting stop-loss orders, maintaining a diversified portfolio, and limiting high leverage during periods of strong volatility. According to the CryptoMarket Insights 2024 report, closely monitoring liquidation data in real-time helps minimize unwanted losses.
Asset Liquidation Value (USD) Liquidation Rate on Total Ethereum (ETH) 135 million 43.5% Bitcoin (BTC) 49.3 million 15.9% Other contracts 125.7 million 40.6%
Frequently Asked Questions
What is cryptocurrency contract liquidation? Liquidation is when the exchange closes the position when the trader is unable to maintain the required margin, helping to limit further losses for both parties. Why is liquidation data important? It reflects market volatility and pressure, thereby assisting investors in adjusting their strategies accordingly. What do long and short mean in contracts? Long indicates an expectation of rising prices, while short indicates an expectation of falling prices. A high number of liquidated longs indicates a failure of the upward trend. What does a high liquidation of Ethereum signify? It indicates that the Ethereum market is under significant pressure, affecting prices and related ecosystem activities. How to reduce the risk of contract liquidation? Implement strict risk management, avoid high leverage, use stop-loss orders, and allocate assets wisely.
Source: https://tintucbitcoin.com/thanh-khoan-hop-dong-tien-dien-tu-310m-usd/
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