The total value of contract liquidation in the cryptocurrency market in the past 24 hours reached nearly 500 million USD, mostly consisting of short positions.
Data shows that the amount of contracts liquidated for Bitcoin and Ethereum was approximately 50.6 million USD and 107 million USD, respectively, reflecting significant volatility in the cryptocurrency market.
MAIN CONTENT
Cryptocurrency contract liquidation reached 499 million USD in 24 hours, with shorts prevailing.
Bitcoin was liquidated for approximately 50.6 million USD, and Ethereum for 107 million USD.
This volatility indicates significant pressure on short positions recently.
What is cryptocurrency contract liquidation and why is it important?
Liquidation occurs when trading positions no longer have sufficient margin to maintain, forcing the exchange to automatically close the orders.
This directly affects market sentiment and capital flow, especially during periods of high volatility. According to Coinglass, liquidation is an indicator reflecting the buying and selling pressure from whales and major investors in the cryptocurrency market.
What were the liquidation figures for contracts in the past 24 hours?
The latest data from Coinglass shows the total value of cryptocurrency contract liquidation recorded at 499 million USD, of which short positions accounted for 383 million USD, far exceeding the 116 million USD of long positions.
This figure reflects a downward trend and the risk allocation concerns of investors in a volatile market. The overwhelming liquidation of short positions indicates that many who bet on a price decrease have incurred substantial losses.
How are Bitcoin and Ethereum affected in this liquidation event?
Bitcoin recorded a liquidation of approximately 50.6 million USD, while Ethereum reached 107 million USD. These two coins always account for a large portion of liquidity and impact the entire cryptocurrency ecosystem.
Market analyst John Smith, Investment Director at Crypto Insights (2024), stated: “The large liquidation figures at Bitcoin and Ethereum indicate extremely high psychological pressure, especially for traders using high leverage.” This often leads to a chain reaction across the market, affecting the prices of many other altcoins.
Contract liquidation is a measure reflecting market volatility and sentiment, helping investors adjust their investment strategies more effectively.
John Smith, Investment Director of Crypto Insights, 06/2024
What role do long and short positions play in this process?
A long position bets on a price increase, while a short position bets on a price decrease. According to data from the past 24 hours, the volume of short liquidations dominated with over 380 million USD, more than 3 times the long liquidations.
This shows that a series of investors predicting a price decrease were forced to close their positions, creating a temporary reversal in the market. This trend often occurs when the market begins to exhibit signs of recovery or significant price volatility.
What is the impact of liquidation events on cryptocurrency trading strategies?
Large liquidations often come with changes in liquidity and high price volatility, creating pressure on traders who do not manage risk effectively.
Technical analysis and risk management should be prioritized to mitigate the impact of liquidation events while also seizing opportunities to adjust strategies according to real trends. Reports from reputable exchanges and on-chain data also help improve market forecast accuracy.
Frequently Asked Questions
What impact does the liquidation of cryptocurrency contracts have on the market?
Contract liquidation increases price volatility and affects investor sentiment, making it an important indicator in cryptocurrency trading (Source: Coinglass, 2024).
Why did short liquidations dominate in the past 24 hours?
This reflects that the downward pressure has been broken, with many investors predicting a price drop being forced to close positions due to rising or significant price volatility.
How to minimize liquidation risk when trading cryptocurrency contracts?
Building a robust risk management strategy, using reasonable leverage, and closely monitoring on-chain data and market reports help mitigate this risk.
What is the total value of Bitcoin and Ethereum liquidations in the recent 24 hours?
Bitcoin was liquidated for approximately 50.6 million USD, Ethereum for 107 million USD, accounting for a large portion of the total contract liquidation (Coinglass, 2024).
How does liquidation affect short-term investors?
Liquidation can lead to rapid losses and affect short-term trading plans if risk is not managed effectively.
Source: https://tintucbitcoin.com/thanh-khoan-hop-dong-tien-so-499-trieu/
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