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The volume of liquidations on exchanges in the last 24 hours exceeded $1 billion. More than half of this amount occurred in the last hour.

According to CoinGlass, nearly 220,000 traders trading with leverage were forcibly liquidated on cryptocurrency exchanges in the past 24 hours.

Despite the overnight rise of Bitcoin to an all-time high, the subsequent drop led to mass liquidations, primarily among those betting on further growth.

The total volume of liquidated long positions exceeded $780 million. Ethereum accounted for $230 million, while Bitcoin accounted for $147 million. Just in the last hour, the volume of liquidations exceeded $546 million.

Forced liquidation occurs when a leveraged trader loses a significant portion of their collateral due to market movement against their position. In the case of a price drop, this primarily affects long traders. When losses reach a critical level, the exchange automatically closes the position to mitigate risks.

Thanks to transaction transparency, analytical platforms like CoinGlass track liquidations in real time. This data is often used as an indicator of market sentiment and allows for the assessment of demand dynamics and the degree of overheating.