In the past 24 hours, $389 million in leveraged cryptocurrency futures positions have been liquidated. The majority of them (85%) are specifically from traders who are positioned high.
Liquidations of energy positions as large as today ($332 million) have not been seen in more than three months, according to data explorer Coinglass. This happened before the decrease in the price of bitcoin (BTC) from USD 44,000 to USD 42,000, which led to a decrease in the cryptocurrency market.
That panorama shows that the drop in the Bitcoin price caught most of the market by surprise, who expect the currency to continue to rise. Before this failure, last week, the price of BTC increased by more than 15%, increasing the income of its investors, as reported by CriptoNoticias.
The largest liquidation during this period occurred on OKX, Binance, and Huobi exchanges. These represent 42%, 30%, and 12% of the total.
ETH liquidations are similar to BTC
Liquidations of bullish bitcoin positions accounted for 25% of the total, and those of ether (ETH) accounted for the same percentage, 20%. In this way, between the two of them, they collected almost half of all the losses seen by traders positioned high.
It should be noted that liquidations refer to the closing of a trader’s positions when their margin account can no longer support their open positions due to large losses or a lack of sufficient funds to meet maintenance requirements. This is done automatically by the platform on which it is located.
In this way, liquidations involve financial losses for entrepreneurs. Therefore, traders need to manage their risk to avoid unexpected situations.