In the past 24 hours, the cryptocurrency market experienced a total of $440 million in contract liquidations. Long position liquidations amounted to $355 million, while short positions accounted for $85.52 million. Bitcoin (BTC) faced the highest liquidations, valued at approximately $128 million, followed by Ethereum (ETH) with liquidations close to $15.1 million. Liquidation in the crypto market occurs when traders’ positions become unstable and are automatically closed, usually due to sudden price fluctuations. These liquidations indicate ongoing uncertainty and rapid volatility in the market, which can result in losses for investors. Bitcoin and Ethereum, being the two largest cryptocurrencies globally, have a significant impact on the market when their liquidations increase. Such liquidations typically rise during sharp price declines or surges, causing traders to fail in maintaining their positions. This volatile situation is likely to persist, as the cryptocurrency market remains highly unstable and is influenced by global economic conditions, regulatory policies, and technical factors. Investors are advised to exercise caution to mitigate potential losses.
Source: binance
