The cryptocurrency derivatives market has been hit hard by the latest bearish continuation in Bitcoin and others as mass liquidations have hit 0 Liquidations Have Neared $1 Billion Over The Last 24 Hours According to data from CoinGlass, a massive amount of liquidations have occurred in the cryptocurrency derivatives market during the past day. A “liquidation” occurs when an open contract exceeds a certain loss threshold defined by the exchange and undergoes forceful 1 Reading: Chainlink (LINK) Triangle Setup Points To $100, Says Analyst Due to the volatility that Bitcoin and other assets have experienced over the last 24 hours, a huge amount of contracts have crossed this 2 is a table that breaks down the relevant numbers related to these 3 is visible, cryptocurrency liquidations have totaled at $967 million inside this window, which is a pretty significant 4 the price action in the past day has majorly been in the bearish direction, the positions most affected would be the bullish 5 indeed, as the data shows, $849 million of the liquidations, representing almost 88% of the total, involved long 6 has recently been dominating speculative activity in the market, and it seems the asset has topped the charts during this derivatives flush as well, with $309 million in 7 has come second with around $246 million.
A mass liquidation event like this latest one isn’t a rare occurrence in the cryptocurrency sector, mainly due to two reasons: coins can be volatile on the regular and extreme amounts of leverage can be easily 8 an event, where a cascade of liquidations occurs, is known as a 9 longs were the party most seriously affected in the latest squeeze, the event would be termed as a long 10 is the second long squeeze that the market has suffered this week, with the other one arriving during Bitcoin’s Monday plummet to $112,000. Here is a chart shared by on-chain analytics firm Glassnode that shows how the previous long squeeze compared against this latest one for Bitcoin: According to Glassnode, the two large long squeezes could actually help prevent more such events in the near future.
“This flush of leverage reflects a broad deleveraging event, often resetting market positioning and easing the risk of further cascades,” explains the analytics 11 Reading: Dogecoin Down 18%, But Whale Withdraws 122 Million DOGE From Binance It now remains to be seen whether the liquidations will be enough to bring a calm to the market, or if there is more volatility ahead for Bitcoin and 12 Price At the time of writing, Bitcoin is trading around $109,200, down more than 6% over the last 13 image from Dall-E, CoinGlass. com, Glassnode. com, chart from 14
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