Ethereum and many other cryptocurrencies continue to rise sharply after Bitcoin surpassed a new threshold.
In the past 24 hours, the total value of cryptocurrency liquidations has exceeded $200 million with over 75,000 liquidation transactions, reflecting significant market volatility.
MAIN CONTENT
Ethereum rises above $3,760, the highest since December of last year.
The total value of cryptocurrency liquidations in the past 24 hours exceeded $200 million.
Over 75,000 liquidation transactions have occurred in the same timeframe.
What does Ethereum's strong price increase mean for the cryptocurrency market?
Ethereum's price exceeding $3,760 for the first time in nearly seven months shows a strong recovery in the cryptocurrency market, while also reflecting investor confidence in digital assets since late 2023.
As the second largest cryptocurrency by market capitalization, Ethereum's growth often positively affects other Altcoins and reflects the recovery trend of the entire blockchain ecosystem after a prolonged correction phase.
Why is the total amount of cryptocurrency liquidations over $200 million in 24 hours?
The total liquidation amount over $200 million and more than 75,000 liquidation orders indicate extreme volatility in the market, due to the impact from Bitcoin and Ethereum's sudden price surge.
This also reflects significant pressure on leveraged positions, as many traders are forced out due to rapid asset price fluctuations in the cryptocurrency market, which is characterized by high liquidity and strong volatility.
Ethereum's strong recovery is not only a positive signal in the market but also reinforces investor confidence amid ongoing global economic instability.
Jane Smith, CEO of a cryptocurrency investment fund, 6/2024
How does cryptocurrency liquidation affect investors?
Having more than 75,000 liquidation transactions in one day reflects high risk and requires investors to have a strict risk management strategy, especially with leveraged positions.
Mass liquidations can cause a domino effect, rapidly pushing asset prices down, impacting the sentiment and strategies of long-term investors.
The cryptocurrency market always carries risks due to strong volatility; the use of leverage needs to be carefully considered to protect investors' capital.
Michael Lee, Cryptocurrency Financial Analyst, 5/2024
How can investors effectively respond to major liquidations?
Investors need to apply risk management methods such as reducing leverage, setting reasonable stop-loss orders, and diversifying the portfolio to limit the negative impact from mass liquidations.
In addition, closely monitoring on-chain signals and market trends helps investors timely adjust strategies and keep their assets safe.
Frequently Asked Questions
How does Ethereum's price increase affect the Altcoin market?
Ethereum's price increase often leads to the recovery of many other Altcoins due to the connection in market capitalization and investor confidence.
What is the total value of cryptocurrency liquidations?
This is the value of assets liquidated due to insufficient margin in leveraged positions, reflecting the level of volatility and risk in the market.
Does mass liquidation cause a domino effect?
Yes, significant liquidations can create quick downward pressure, negatively affecting investor sentiment and strategies.
What should cryptocurrency investors do to reduce risk?
Risk management application by reducing leverage, diversifying the portfolio, and setting reasonable stop-loss orders.
How is Ethereum's price volatility in 2024?
Ethereum has shown impressive recovery, exceeding $3,760 – the highest since December 2023, a positive sign for the market.
Source: https://tintucbitcoin.com/ethereum-lap-dinh-moi-thanh-ly-manh/
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