Bitrabo Editorial
Recent data reveals massive liquidations in the crypto derivatives market following Bitcoin’s sharp drop to $59,000.
Bitcoin’s Sudden Dive Below $60,000 Shocks Investors
In a surprising turn of events, Bitcoin witnessed a significant crash, undoing the gains made over the past week.
The graph illustrates the recent trajectory of the cryptocurrency.
During the plummet, Bitcoin fell below $59,000 but has since bounced back to $59,900. Despite the recovery, BTC remains down by approximately 4% in the last 24 hours.
Following Bitcoin’s downward trend, other cryptocurrencies have also taken a bearish turn. However, many altcoins have managed to limit their losses compared to BTC.
Given the recent market volatility, the derivatives market has experienced significant turbulence.
Crypto Derivatives Market Faces $319 Million in Liquidations
Data from CoinGlass shows a substantial number of contracts being liquidated in the cryptocurrency derivatives sector in the past day. “Liquidation” refers to the forced closure of an open contract once it incurs significant losses.
Here is a table displaying the pertinent information regarding the recent mass liquidation event.
The total liquidations in the cryptocurrency market have reached $319 million, with long contracts accounting for over 80% of the liquidated amount, totaling $261 million.
The disproportionate impact on longs compared to shorts is logical, given the market crash experienced by Bitcoin and other assets during this period.
Bitcoin and Ethereum, the two largest cryptocurrencies, have been significant contributors to these liquidations.
Despite Ethereum’s returns being akin to Bitcoin’s, the difference in liquidations between the two has been marginal, signaling increased speculation on Ethereum fueled by leverage. The recent volatility has resulted in losses for many speculators, raising questions about the asset’s future market interest.