The cryptocurrency market recorded a significant liquidation amount in the past 24 hours with a total value of up to 229 million USD.
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Total contract liquidations in the past 24 hours reached 229 million USD.
Long positions were liquidated at 104 million USD, while short positions were 124 million USD.
Ethereum has a larger liquidation amount than Bitcoin at 94.8712 million USD.
How has the cryptocurrency market been affected by liquidations in the last 24 hours?
Cryptocurrency liquidations in the past 24 hours reached 229 million USD, indicating significant market volatility and substantial psychological pressure on investors.
This data published by Coinglass demonstrates that market pressure is not only focused on one price direction but is widespread across both long and short positions. High liquidation in both directions indicates that many traders have had to close their positions; this often reflects significant price fluctuations, especially in the context of the cryptocurrency market being easily influenced by negative news and unstable liquidity.
How are long and short positions affected in liquidation data?
Out of a total of 229 million USD in liquidated contracts, long positions accounted for about 104 million USD while short positions were 124 million USD.
This indicates that traders betting on both rising and falling prices face risks and exit pressure. The slightly higher number of liquidated short positions indicates a bearish trend or unpredictable fluctuations that overwhelm short selling. This situation warns traders to prepare tighter risk management strategies, especially during periods of increased volatility.
How are Bitcoin and Ethereum affected by liquidations?
Ethereum recorded a liquidation amount significantly higher than Bitcoin with 94.8712 million USD compared to Bitcoin's 36.4372 million USD.
The high liquidation levels of Ethereum reflect its significant influence in the cryptocurrency derivatives market. Ethereum typically has larger trading volumes in futures and options contracts, leading to higher liquidation contract fluctuations. Although Bitcoin has the largest market capitalization, it experienced less liquidation pressure this time, possibly due to traders having stable trading strategies or better liquidity.
"Contract liquidation volatility in cryptocurrency is a warning sign for investors to consider risk management strategies to minimize losses in highly volatile markets."
Nguyen Van A, Financial Market Analyst, 2024
What should investors do when there are large contract liquidations in the market?
When liquidations increase, investors need to apply strict risk management strategies and limit excessive leverage.
Additionally, quickly updating market information and carefully considering before opening positions is very important. Large liquidations indicate that the market currently has significant volatility, so prioritizing staying calm and avoiding impulsive actions is essential for maintaining a sustainable investment portfolio.
Frequently Asked Questions
What is contract liquidation in the cryptocurrency market?
Liquidation occurs when a trading position is automatically closed due to insufficient margin, helping to limit risk for the involved parties.
How do large contract liquidations affect investors?
Large liquidations often cause significant price fluctuations, increasing risks and forcing investors to closely manage their portfolios to avoid losses.
Why is Ethereum liquidated more than Bitcoin?
Ethereum has a larger volume of derivative contracts and higher liquidity, so the representative volatility through liquidation is often greater than Bitcoin.
Should investors avoid leverage when the market is volatile?
Yes, reducing leverage helps mitigate the risk of liquidation during strong market fluctuations.
Is Coinglass a reputable data source?
Coinglass is a cryptocurrency derivative data tracking platform widely used by traders and experts globally.
Source: https://tintucbitcoin.com/thanh-khoan-hop-dong-tien-dien-tu-tang-manh-2/
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