In the past hour, the cryptocurrency market recorded a total liquidation value of network contracts reaching 106 million USD.
In this case, long positions faced heavy liquidation pressure with nearly 105 million USD, while short positions were liquidated for about 770 thousand USD. Specifically, ETH and BTC accounted for liquidation amounts of 40.43 million USD and 21.14 million USD respectively.
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The total value of network contract liquidations in cryptocurrency reached 106 million USD within an hour.
Long positions were liquidated to 105 million USD, overwhelming short positions.
ETH and BTC are the two currencies with the largest liquidations, with over 40 million USD and 21 million USD respectively.
What is network contract liquidation in cryptocurrency within an hour?
Network contract liquidation is the forced closing of trading positions when the collateral asset is insufficient, signaling high risk in the market.
In the past hour, data from Coinglass shows that the entire cryptocurrency market experienced 106 million USD in liquidations across network contracts, raising concerns about significant market volatility. This is a large figure, reflecting a strong reversal in trading sentiment.
Why are long positions liquidated more than short positions?
During periods of decreasing price volatility or corrections, long positions (buying) are more prone to liquidation due to the depreciation of collateral assets.
The liquidation of long positions nearing 105 million USD compared to 770 thousand USD for shorts indicates a downward price trend or strong selling pressure in the cryptocurrency market over the past hour. Many investors holding long positions may have had to close their trades due to sudden price drops.
How are ETH and BTC affected by liquidations?
ETH faced the largest liquidation pressure with a total value of 40.43 million USD, while BTC had the second-highest liquidation value of 21.14 million USD.
Among the two largest cryptocurrencies by market capitalization, the liquidation above shows that capital flows and trading activities are heavily focused on ETH and BTC-related contracts. This is also an indication that these two currencies continue to dominate in derivatives trading.
The total of 106 million USD in contract liquidations within an hour is a clear testament to the significant volatility and increased risks in the cryptocurrency market today.
Market analyst, 2024
Frequently Asked Questions
Does network contract liquidation affect cryptocurrency prices?
Large liquidations create selling pressure, which can quickly drive prices down and increase market volatility.
Why are long positions easier to liquidate?
Long positions are at risk when the price falls below the margin level, leading to mandatory order closures.
How to avoid contract liquidation in the cryptocurrency market?
Tight risk management, portfolio diversification, and reasonable stop-loss orders help limit liquidations.
Do ETH and BTC frequently experience contract liquidations?
As major currencies, ETH and BTC often have high liquidity and experience significant liquidations during market fluctuations.
Source: https://tintucbitcoin.com/thanh-khoan-hop-dong-tien-ao-vuot-100-trieu/
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