In the past 24 hours, the cryptocurrency market recorded contract liquidations totaling 525 million USD, with pressure primarily from short positions.
Detailed data shows that liquidations of Bitcoin and Ethereum account for a large portion, reaching 110 million and 196 million USD, respectively, reflecting strong price volatility on the two leading coins in the market.
MAIN CONTENT
Cryptocurrency contract liquidations in the past 24 hours exceeded 525 million USD.
Short positions dominated with 467 million USD of the total liquidation.
Bitcoin and Ethereum were liquidated at scales of 110 million USD and 196 million USD, respectively.
How has the cryptocurrency market been affected in the last 24 hours?
Coinglass data reports that the total value of contracts liquidated reached 525 million USD in the past 24 hours, indicating significant volatility. Short liquidations overwhelmingly dominated at 467 million USD, while long positions accounted for only about 57.8 million USD.
These liquidation numbers reflect strong selling pressure in the cryptocurrency market, especially in futures contracts, forcing many investors to cut losses or take profits due to significant price volatility.
Why are Bitcoin and Ethereum experiencing the highest liquidations?
Bitcoin and Ethereum maintain their leading roles in the cryptocurrency market and are also the largest sources of liquidity. In the past 24 hours, Bitcoin contract liquidations were estimated at 110 million USD, while Ethereum was 196 million USD.
This phenomenon is mainly due to the strong liquidity of these two coins, where large trading volumes make prices easily affected during strong fluctuations, leading to the mass liquidation of open positions. This reflects market sentiment and pressure from large traders.
Large liquidation pressure on Bitcoin and Ethereum often reflects market-level volatility, requiring investors to have strict risk management strategies to minimize undesirable losses.
Market analyst, 2024
What is contract liquidation in the cryptocurrency market, and why is it important?
Contract liquidation is the process of forcibly closing losing positions that exceed the margin, whereby the contract will be automatically closed to prevent further risk. This is a common mechanism on futures exchanges.
The liquidation process reflects market pressure, helps maintain system stability, and alerts investors about high risk levels in leveraged trading. Large liquidation data often signals strong market volatility trends and increased concern among traders.
How does contract liquidation affect the price trend of Bitcoin and Ethereum?
When there is a large amount of liquidation on Bitcoin and Ethereum, prices often experience strong fluctuations due to the mass liquidation pressure from investors. The simultaneous liquidation of short or long positions can lead to sudden price spikes and drops.
Understanding liquidation signs helps traders identify risk points, allowing them to make appropriate trading decisions to exploit volatility or avoid losses in downward trends or high price fluctuations.
What are the risk management measures when there are large liquidations in the market?
Investors need to implement systematic risk management, such as limiting leverage, setting reasonable stop-loss orders, and diversifying their investment portfolios to mitigate the impact of strong market fluctuations. Most importantly, avoid going all-in or taking large positions beyond their risk tolerance.
Additionally, continuously monitoring the liquidation situation in the market will help predict strong volatility phases and choose reasonable entry/exit points, thereby protecting capital more effectively when the market is highly volatile.
Frequently Asked Questions
What is cryptocurrency contract liquidation?
Liquidation is the mandatory closing of contracts when the position loss exceeds the margin, aiming to protect capital and maintain the stability of the exchange.
Why are short positions being liquidated more frequently?
Short positions are easily affected by sudden price increases, causing short sellers to have to cut losses quickly, leading to more liquidations.
What does significant liquidation of Bitcoin and Ethereum mean for market trends?
This indicates selling pressure and large price volatility on the two leading coins, which may signal short-term risks.
How to minimize risk during strong market fluctuations?
Applying risk management, using appropriate leverage, setting stop-loss orders, and closely monitoring liquidation data helps effectively protect capital.
Is the liquidation data updated regularly?
Platforms that monitor liquidations provide real-time data, helping investors promptly grasp market trends.
Source: https://tintucbitcoin.com/thanh-khoan-hop-dong-tien-so-525-trieu/
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