In the past 24 hours, the cryptocurrency market has witnessed 588 million USD in liquidated contracts, mostly belonging to short positions.
Data from Coinglass shows that liquidations included 84.2742 million USD in long positions and 504 million USD in short positions, with Bitcoin and Ethereum accounting for most of the liquidation value.
MAIN CONTENT
The cryptocurrency market liquidated contracts worth 588 million USD in 24 hours.
Short positions accounted for the majority of liquidations, approximately 504 million USD.
BTC and ETH were liquidated for 130 million USD and 239 million USD respectively.
How has the cryptocurrency market changed in the past 24 hours?
The latest statistics from Coinglass as of August 18 indicate that the total value of cryptocurrency contracts liquidated in 24 hours reached 588 million USD. This reflects a large liquidity pressure in the market, especially under the influence of significant price fluctuations.
Contract liquidation occurs when an investor's position does not meet the maintenance requirements due to price fluctuations, leading to automatic position closure. In this case, the data reflects a high level of risk and significant volatility in the cryptocurrency market.
What is the liquidation distribution between Long and Short positions?
Of the total 588 million USD in contracts liquidated, short positions were heavily affected with 504 million USD liquidated, equating to about 85.7%. Long positions were liquidated at 84.2742 million USD.
This discrepancy indicates selling pressure or positive profit-taking moves from traders betting on a downward price trend. This is also an important technical signal warning of strong volatility for high-leverage strategies.
What is the specific liquidation volume of Bitcoin and Ethereum?
Bitcoin was liquidated for a total of 130 million USD, accounting for nearly 22% of the total liquidation market. Meanwhile, Ethereum saw liquidations of up to 239 million USD, making up about 40.6% of the total.
This reflects the important role and significant influence of the two dominant currencies on the overall market trend, while also indicating a high level of volatility in trading positions on BTC and ETH recently.
"Large-scale cryptocurrency contract liquidations reflect high volatility and warrant attention to risk management in investing."
Cryptocurrency market expert Nguyen Minh Hoang, 2024
Frequently Asked Questions
What is cryptocurrency contract liquidation?
Contract liquidation is the automatic closing of a position when the collateral is insufficient to meet requirements, in order to limit risk for the margin service provider.
Why are short positions liquidated more often?
Short positions are often liquidated when market prices rise rapidly, causing short sellers to be unable to maintain margin or protective orders.
What does it mean when Bitcoin and Ethereum are liquidated heavily?
BTC and ETH represent a large proportion due to their strong influence on the market; high liquidation levels indicate significant price volatility and high risk for investors.
How does liquidation information affect investors?
Large liquidations often lead to strong price volatility; investors need to carefully consider risk management strategies and avoid excessive leverage.
How to mitigate liquidation risk?
Managing leverage appropriately, closely monitoring price fluctuations, and placing stop-loss orders are ways to reduce the risk of liquidation.
Source: https://tintucbitcoin.com/thanh-ly-hop-dong-tien-dien-tu-588-trieu/
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