In the past 24 hours, the cryptocurrency market has recorded nearly 1 billion USD in liquidated contracts, with pressure from short positions dominating.
Data from Coinglass shows that the total amount of capital liquidated is 998 million USD, including 248 million USD from long positions and 749 million USD from short positions. Bitcoin and Ethereum are the two currencies most affected, with 214 million USD and 322 million USD liquidated respectively.
MAIN CONTENT
The cryptocurrency market has liquidated a total of 998 million USD in the past 24 hours.
Short positions dominate with 749 million USD liquidated compared to 248 million USD from long positions.
Bitcoin and Ethereum account for a large portion of the liquidated liquidity with 214 million USD and 322 million USD.
How much has the cryptocurrency market been liquidated in the past 24 hours?
Data from Coinglass indicates that the total number of liquidated contracts in the cryptocurrency market over the past 24 hours reached 998 million USD. This figure reflects the high volatility in digital assets and pressure from positions that are forced to close.
Contract liquidations are an important indicator of market volatility as well as adjustments when many investors cannot maintain their positions. This data directly affects price movements as well as traders' psychology in the short term.
How is the liquidation ratio distributed between long and short positions?
Of the 998 million USD liquidated, short positions accounted for 749 million USD, significantly higher than the long positions at only 248 million USD. This indicates that selling pressure is dominating, reflecting a short-term downward trend or significant concerns from the cryptocurrency market.
This crisis often occurs when many traders bet on falling prices and get liquidated when the trend reverses or becomes highly volatile. A high liquidation ratio in short positions also warns of the possibility of sudden recovery bursts in the future.
How are Bitcoin and Ethereum affected in this liquidation wave?
Bitcoin recorded 214 million USD in liquidated contracts, while Ethereum was 322 million USD, reflecting the significant influence of these two currencies in the cryptocurrency market. This data shows that ETH has even superior liquidation levels compared to BTC in the recent wave of fluctuations.
The large liquidation force on the two major currencies reflects their sensitivity to market fluctuations as well as their important role in the trader's investment asset basket. This is also a warning sign for users to be cautious and apply effective risk management when trading Bitcoin and Ethereum.
Liquidation pressure is showing strong fluctuations and requires high vigilance from cryptocurrency investors during this period.
Cryptocurrency market analyst, 2024
Frequently Asked Questions
What is cryptocurrency contract liquidation?
Contract liquidation is the automatic closing of positions when the account does not have enough margin due to asset price fluctuations, aimed at limiting risks for the exchange and investors.
Why are short positions liquidated more than long positions?
This often occurs when asset prices suddenly rise, causing traders betting on price declines (shorts) to be unable to maintain their positions and be forced to liquidate.
How does a large amount of liquidation affect the cryptocurrency market?
Liquidation pressure can cause strong fluctuations, creating price waves, while also affecting investor psychology and trading decisions.
Is it a bad sign that Bitcoin and Ethereum are heavily liquidated?
This is a manifestation of strong volatility but also opens up opportunities for recovery or positive adjustments in the near future.
How to minimize the risk of liquidation when trading cryptocurrencies?
Investors need to apply strict risk management, set stop-loss orders, and avoid trading with excessive leverage to limit losses when the market fluctuates.
Source: https://tintucbitcoin.com/thanh-khoan-hop-dong-tien-dien-tu-tang-manh/
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