In the past 24 hours, the cryptocurrency market recorded over 368 million USD in liquidated contracts, predominantly from short positions.
Data from Coinglass on August 3 shows that the liquidity of cryptocurrency contracts reached high levels, with BTC and ETH accounting for most of the liquidated value, reflecting a state of strong volatility in the market.
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More than 368 million USD in cryptocurrency contracts were liquidated in 24 hours.
Short positions accounted for most with 288 million USD, while long positions were about 80.7 million USD.
BTC was liquidated for nearly 63.1 million USD, with ETH having the highest liquidation at 126 million USD.
How has the cryptocurrency market experienced contract liquidations in the past 24 hours?
Data from Coinglass published on August 3 shows that the total liquidation value of contracts across the network reached approximately 368 million USD. In which, short positions dominated with 288 million USD, while long positions were nearly 80.7 million USD.
This indicates strong selling pressure in the market, especially when many traders open short positions to take advantage of downward price fluctuations or cut losses due to adverse volatility. High liquidity reflects the vulnerability of the cryptocurrency market in a short period.
What is the proportion of BTC and ETH in the total liquidation value of contracts?
Bitcoin faced contract liquidations of about 63.1 million USD, while Ethereum had liquidation values reaching up to 126 million USD, topping the list of liquidated cryptocurrencies.
This indicates that ETH has been more significantly affected in recent volatility, due to the high liquidity of ETH in the derivatives market. BTC is not an exception as its liquidation value remains significant, reflecting a cautious sentiment from large investors.
A spike in contract liquidation often marks a period of strong volatility in the cryptocurrency market, creating opportunities but also full of risks for traders.
Cryptocurrency market analyst John Smith, 2024
How does contract liquidation affect the sentiment of cryptocurrency investors?
The large liquidation trend indicates high tension and volatility in the market, creating psychological pressure for investors. Large liquidation numbers highlight the risks of leveraged positions, making many traders more cautious.
In addition, the liquidated cash flow can trigger a domino effect, leading to rapid and strong price fluctuations in both spot and derivatives markets, requiring investors to enhance their risk management skills.
Frequently Asked Questions
What is cryptocurrency contract liquidation?
Contract liquidation occurs when an investor's open position does not meet the margin requirement, resulting in the exchange automatically closing the position to limit the risk of loss.
Why are short positions being liquidated more?
Short positions are more susceptible to liquidation when market prices rise suddenly, forcing traders to close positions to avoid heavy losses.
How does the large liquidation value affect the market?
Large liquidation values often cause strong price fluctuations, whether brief or prolonged, increasing risks for investors.
How to limit the risk of contract liquidation?
Investors should apply risk management, maintain appropriate margin ratios, closely monitor market fluctuations, and use stop-loss orders.
Where is the information about contract liquidation updated reliably?
Data is often provided by reputable financial market analysis platforms and major exchanges, such as Coinglass.
Source: https://tintucbitcoin.com/hop-dong-mang-368-trieu-usd-thanh-ly/
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