Over the past 24 hours, the cryptocurrency market reported a liquidation amount of up to 420 million USD, evenly distributed between Long and Short positions.
Data from Coinglass shows that Bitcoin and Ethereum account for the majority of the liquidation value with 127 million USD and 120 million USD, respectively, reflecting strong volatility in this market.
MAIN CONTENT
The cryptocurrency market has 420 million USD in liquidated contracts in 24 hours.
Long positions and short positions are nearly balanced at 212 million USD and 208 million USD.
Bitcoin and Ethereum account for the majority of liquidation value, at 127 million USD and 120 million USD, respectively.
What is the scale of contract liquidations in the cryptocurrency market over the past 24 hours?
Updated data from Coinglass on August 11 indicated that the total number of contracts liquidated in the cryptocurrency market reached 420 million USD. This is a notable figure reflecting the recent strong volatility across many digital assets.
The large amount of contracts liquidated in the short term indicates that traders are under pressure as the market adjusts or experiences high volatility, leading to many positions being forced to close.
What is the discrepancy between Long and Short positions in liquidation?
According to the report, out of a total of 420 million USD in liquidated contracts, Long positions accounted for 212 million USD, while Short positions were approximately 208 million USD, nearly balanced.
This distribution reflects that buyers and sellers are suffering equivalent losses, creating a temporary state of balance in market liquidity. This trend often appears during periods of high volatility and unclear direction.
How do Bitcoin and Ethereum affect liquidation levels in the market?
Bitcoin and Ethereum are the two cryptocurrencies accounting for the majority of liquidation value in 24 hours, at 127 million USD and 120 million USD, respectively. This data reflects the significant influence of these two main assets on the entire market.
The high liquidation rates of BTC and ETH indicate that traders often concentrate significant capital and positions in these two coins. The price volatility of Bitcoin and Ethereum also contributes to shaping the overall market sentiment.
During times of high market volatility, liquidating hundreds of millions of USD in contracts in a single day is a warning sign of high risk for leveraged investors.
Cryptocurrency Market Analyst, 2024
Frequently Asked Questions
What is a liquidated contract?
Liquidated contracts occur when a trading position does not have enough margin to maintain, resulting in an automatic closure of the position to avoid greater losses.
Why are Long and Short positions liquidated almost equally?
This indicates that the market is in a state of balance and fluctuating in both upward and downward directions, putting pressure on both buying and selling positions.
How do Bitcoin and Ethereum affect market liquidity?
BTC and ETH dominate trading volume, so the volatility of these two coins directly affects the market-wide liquidation levels.
How does contract liquidation affect investors?
Liquidation results in capital loss for leveraged investors and can also create short-term price volatility due to sudden selling or buying pressure.
How to mitigate liquidation risks when trading with leverage?
Risk management, setting reasonable stop-loss orders, and not using excessive leverage are ways to reduce the likelihood of liquidation.
Source: https://tintucbitcoin.com/thanh-ly-mang-luoi-420-trieu-usd/
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