Bitrabo Editorial
A significant number of cryptocurrency long positions have experienced liquidation recently due to the high volatility in Bitcoin and other digital assets.
Bitcoin’s Price Fluctuations in the Last 24 Hours
Bitcoin has had a turbulent time in the past day, with its value ranging from a low around $62,300 to a high nearly reaching $65,600. The chart below illustrates the recent volatility in Bitcoin’s price.
The graph shows a initial drop, followed by a quick ascent that brought Bitcoin to its peak. Despite the high, Bitcoin couldn’t maintain its position and has retraced back to $64,600. Overall, the cryptocurrency has moved sideways in the last 24 hours.
However, many altcoins have not fared as well, with several experiencing negative returns during this period of high volatility in the market.
Large Liquidations Recorded in Crypto Derivatives Market
Data from CoinGlass indicates that the cryptocurrency derivatives market has witnessed a significant number of contract liquidations in the recent period. Liquidation occurs when a contract is forcibly closed due to incurring a certain level of losses.
Below is a table outlining the details of the recent mass liquidation event in the digital asset space:
Over the past 24 hours, the cryptocurrency derivatives market has seen contracts worth $256 million being liquidated, with over $193 million belonging to long positions, accounting for more than 75% of the total liquidations.
The dominance of long liquidations can be attributed to the general downward trend in most cryptocurrencies during this period, even though Bitcoin saw a recovery after an initial sharp decline.
Bitcoin and Ethereum led the liquidations, with $72 million and $58 million, respectively. Solana (SOL) and XRP (XRP) followed with $18 million and $7 million in liquidations, showing a high level of speculative interest.
Such mass liquidation events are not uncommon in the cryptocurrency derivatives market due to the frequent price fluctuations and the availability of high leverage, which can pose risks for uninformed traders.