In the past 24 hours, the cryptocurrency market recorded 387 million USD in liquidated contracts, with ETH accounting for up to 135 million USD.
Coinglass published data showing that the total number of liquidated contracts is 387 million USD, including 135 million USD in long positions and 252 million USD in short positions, with BTC and ETH making up the majority.
MAIN CONTENT
The cryptocurrency market has liquidated contracts worth 387 million USD in the last 24 hours.
The long position accounts for 135 million USD, while the short position accounts for 252 million USD.
BTC and ETH have total liquidation values of 52.41 million USD and 135 million USD, respectively.
What is cryptocurrency contract liquidation and why should we care?
Cryptocurrency contract liquidation occurs when a trader's position is closed due to insufficient margin, to avoid excessive losses for the exchange. This is an important indicator reflecting market pressure and price volatility.
Large liquidations often occur during periods of strong price volatility or reversal, thereby affecting investor sentiment and trading decisions. The latest Coinglass data demonstrates strong volatility in the past 24 hours.
What is the overview of contract liquidations in the last 24 hours?
The report data recorded 387 million USD in liquidated contracts, where the long position was liquidated at 135 million USD and the short position at 252 million USD. BTC suffered a loss of 52.41 million USD, while ETH was 135 million USD.
The fact that ETH has a higher liquidation level than BTC indicates strong selling pressure on Ethereum recently, partly reflecting the market sentiment volatility towards this leading Altcoin.
The cryptocurrency market is experiencing significant fluctuations, causing many positions to be forced liquidated, especially those traders using high leverage who face substantial risks.
Cryptocurrency market analyst, 2024
Why are short positions liquidated more than long positions?
The liquidated short position is 252 million USD, more than double the long position, indicating a temporary price increase or short-term volatility has wiped out short orders. This data reflects market stress as prices hit important support or resistance levels.
This imbalance often appears during market recovery or pump phases, directly affecting liquidity and price volatility in the short term.
How can investors take advantage of liquidation information?
Professional investors monitor liquidation data to identify high liquidity price zones and market pressure. When there are signs of many contracts being liquidated, it may be wise to adjust positions to reduce risk.
Good risk management, avoiding excessive leverage, and frequently updating on-chain and off-chain data help keep assets safe in a highly volatile market.
Frequently Asked Questions
What does cryptocurrency contract liquidation mean?
Contract liquidation is the automatic closing of a trading position when the account is insufficiently margined, to limit losses for both the trader and the exchange.
Why are the liquidated short contracts higher than the long contracts?
This often happens when the market suddenly surges, forcing short sellers to close their positions, creating greater liquidation pressure.
What does it mean that ETH has a higher liquidation level than BTC?
This reflects that ETH is under stronger volatility pressure, showing investor uncertainty with this Altcoin.
How to reduce liquidation risk when trading cryptocurrency contracts?
Managing leverage wisely, monitoring liquidity indicators, and choosing safe trading times help minimize the risk of liquidation.
Where is the liquidation contract data updated from?
Data platforms specializing in derivative trading like Coinglass compile and update regularly to accurately reflect the market situation.
Source: https://tintucbitcoin.com/thanh-ly-hop-dong-mang-tien-dien-tu-387-trieu-usd/
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