The cryptocurrency market experienced significant turbulence over the last 24 hours, with total liquidations soaring to $535.53 million (approximately ₱31.2 billion), impacting 169,591 traders. Bitcoin, the leading cryptocurrency, fell close to 5%, dropping to a price of $97,102. Other prominent cryptocurrencies, including Ethereum (ETH) and Solana (SOL), also faced considerable declines amid the market turmoil.
Key Liquidation Figures
The largest single liquidation event was an ETHUSDT position on Binance, valued at $17.74 million, highlighting the risks associated with leveraged trading in the current market environment.
Liquidation Breakdown
Here’s a detailed look at the liquidation figures:
- Total Liquidations:
- Bitcoin: $81.69 million
- Ethereum: $98.30 million
- Solana: $21.15 million
- Dogecoin: $18.12 million
- XRP: $11.55 million
- Time-based Liquidations:
- 1 hour: $4.70 million
- 4 hours: $55.88 million
- 12 hours: $447.22 million
- 24 hours: $535.53 million
- Long vs. Short Liquidations:
- Long: $479.49 million
- Short: $56.04 million
Exchange-Specific Liquidation Data
In the last four hours, the following exchanges reported significant liquidation amounts:
- OKX: $22.66 million (84.69% Long)
- Binance: $21.43 million (76.54% Long)
- Bybit: $9.55 million (76.68% Long)
- HTX: $990.73 thousand (82.17% Long)
- CoinEx: $899.81 thousand (61.85% Short)
Understanding Liquidations
Liquidations occur when an exchange forcibly closes a trader’s leveraged position due to insufficient margin requirements. This often happens when the market shifts unfavorably, leading to losses that surpass the trader’s collateral. Leveraged trading allows traders to borrow funds to enhance potential gains, but it also significantly increases risk exposure. While the potential for profit is high, the possibility of rapid losses is equally pronounced.
The Impact of Margin Calls
When the market moves against a trader’s position, they may receive a margin call, which is a request for additional funds to maintain their position. If they fail to comply, the exchange will automatically liquidate their position, leading to substantial financial losses.
Market Context
Bitcoin’s recent decline to $97,102 indicates a 4.8% drop within a 24-hour period, primarily driven by long liquidations. Other major cryptocurrencies, such as Ethereum and Solana, experienced even more significant losses during this volatile period.
As of 9:00 AM, the cryptocurrency market continues to adjust to these fluctuations, leaving many traders to navigate the complexities of this unpredictable landscape.
