The cryptocurrency market recorded over 230 million USD in liquidated contracts in the past 24 hours.
Among them, long positions accounted for 142 million USD and short positions were over 87 million USD, with BTC and ETH being the two most affected coins.
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Over 230 million USD worth of cryptocurrency contracts were liquidated in 24 hours.
Long positions accounted for the majority with 142 million USD, while short positions were around 87 million USD.
The most affected are BTC with nearly 36 million USD and ETH with nearly 75 million USD.
How has the cryptocurrency market been liquidated in the past 24 hours?
Data from Coinglass shows that the total value of contracts liquidated in the past 24 hours reached over 230 million USD. In which, long positions accounted for a large proportion with 142 million USD, while short positions liquidated were 87.3835 million USD.
Through these data, it can be seen that cryptocurrency trading in the past day has been quite strong, reflecting significant volatility in the market. This is a sign that investors may be adjusting their portfolios to cope with price fluctuations.
How are BTC and ETH affected during contract liquidations?
Bitcoin (BTC) has the highest number of liquidated contracts after totaling about 35.9175 million USD. Ethereum (ETH) was more severely affected with a total liquidation value of up to 74.7704 million USD.
This discrepancy reflects the differences in liquidity and trading scale between the two leading cryptocurrencies. ETH, with its diverse derivative products, has attracted many contracts, leading to larger price fluctuations causing more liquidation than BTC.
"The significant increase in contract liquidations in recent trading sessions shows that investors need to have a strict risk management strategy, especially with assets that have high price volatility like cryptocurrencies."
– Le Minh Hoang, cryptocurrency financial expert, 2024
How can investors cope with greater contract liquidations in the cryptocurrency market?
To mitigate risks when the market is volatile, investors need to strengthen leverage management, clearly define stop-loss points, and closely monitor price movements. Diversifying the portfolio and choosing safer products also helps reduce the risk of liquidation.
Financial experts advise investors not to rely too much on high leverage positions in the short term as they can be liquidated quickly when prices fluctuate unfavorably.
Frequently Asked Questions
What is contract liquidation in the cryptocurrency market?
Contract liquidation occurs when a trading position is cut due to insufficient margin, in order to limit further losses for both the trader and the exchange.
How do long and short positions differ?
Long positions predict rising prices, while short positions predict falling prices. Liquidation will occur when the market moves against the forecast.
How can liquidation data help investors?
The liquidation index provides warnings of strong volatility, helping investors adjust their strategies and manage risks more effectively.
Why does ETH have a higher contract liquidation value than BTC?
ETH has a wide variety of derivative products and high liquidity, causing contract liquidations to often occur with values greater than BTC.
Source: https://tintucbitcoin.com/24h-mang-thanh-ly-hop-dong-230-trieu-usd/
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