The cryptocurrency market has witnessed a liquidation of contracts amounting to 343 million USD in the past 24 hours.
Of this, the long position accounts for 171 million USD and the short position is 172 million USD. Bitcoin and Ethereum are the two currencies with significant liquidation levels.
MAIN CONTENT
The cryptocurrency market liquidated 343 million USD in 24 hours.
The long and short positions are balanced, amounting to 171 million USD and 172 million USD respectively.
Bitcoin liquidated 46.687 million USD; Ethereum liquidated 125 million USD.
How did the cryptocurrency market experience liquidation of contracts in the past 24 hours?
Statistics from Coinglass show that in the past 24 hours, the global cryptocurrency market has experienced a liquidation of contracts amounting to 343 million USD. This figure reflects strong volatility and significant pressure in margin trading.
This contract liquidation reflects market pressure from both the long and short sides, causing many positions to no longer have sufficient margin to maintain. The liquidation component impacts major currencies broadly, especially Bitcoin and Ethereum quite heavily.
How is the allocation between long and short positions in the liquidation volume?
The long liquidation amount reaches 171 million USD, nearly equivalent to the short liquidation of 172 million USD, reflecting a balance of buying and selling pressure in the cryptocurrency market.
This indicates that both investors and traders are under significant pressure in conditions of strong price volatility, with no side having a clear advantage. Balanced liquidation makes it difficult to predict short-term market trends.
How are Bitcoin and Ethereum affected by liquidation contracts?
Bitcoin has a total liquidation amount of 46.687 million USD, while Ethereum experiences a greater liquidation of 125 million USD from liquidation contracts across various trading forms. This indicates high price volatility and significant liquidity in the two leading market currencies.
Ethereum accounts for the majority of the liquidation amount, indicating greater pressure on ETH traders due to higher liquidity and a wider variety of related financial products. Bitcoin remains the focus but has lower liquidation levels.
The massive liquidation reflects severe volatility in the cryptocurrency market, and the risks in margin trading need to be managed strictly.
Financial analyst, 2024
Can cryptocurrency market trends be predicted based on liquidation data?
Liquidation data provides important insights into market pressure and changes in investor sentiment, aiding in more effective technical analysis and portfolio management.
However, predicting short-term trends requires combining multiple indicators and data, as the liquidation amount only reflects part of the market movements and does not entirely determine price direction.
Frequently Asked Questions
What is cryptocurrency contract liquidation?
Contract liquidation occurs when the margin position loses its ability to maintain due to adverse price movements, leading to forced closure of positions to avoid further losses.
Why is the amount of liquidation important in cryptocurrency trading?
The amount of liquidation reflects market pressure and price volatility, helping investors assess risk and adjust strategies appropriately.
How does the amount of liquidation affect the price of Bitcoin and Ethereum?
Large liquidations are often accompanied by strong price movements, affecting the sentiment and liquidity of Bitcoin and Ethereum.
Are long-term traders affected by contract liquidation?
Liquidation mainly affects short-term margin trading, while long-term traders are less directly impacted.
How to manage risk when margin trading cryptocurrencies?
Traders need to set stop-loss points, manage capital, and closely monitor market fluctuations to minimize liquidation risks.
Source: https://tintucbitcoin.com/thanh-ly-hop-dong-dien-tu-343-trieu-usd/
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