Crypto Market Liquidation Reaches 191 Million Dollars in 24 Hours

Bittime - Crypto markets liquidation experienced a massive surge in the last 24 hours, with total liquidations reaching a staggering figure of 191 million US dollars. 

Most of these crypto market liquidations occurred in long positions, indicating major selling pressure in the market. Read this article to find out more!

Read Also: What is Liquidation in Crypto, Types, Process and Stages  

Crypto Market Liquidation on Long Position

Source: Coinglass.com

According to data from Coinglass, of the total 191 million US dollars in liquidations that occurred, 142 million US dollars came from long positions, while the remainder, around 48 million US dollars, came from the liquidation of short positions. 

Liquidation of long positions occurs when the price of a crypto asset falls significantly, causing traders who bet on the price to rise (long) to lose capital. Meanwhile, liquidation of a short position occurs when the price of a crypto asset rises, and traders who bet on the price going down (short) experience a loss.

The long position that dominates crypto market liquidation indicates that many traders hope that crypto prices will rise in recent times. However, the crypto market actually moved in the opposite direction, triggering massive liquidations.

Crypto Market Liquidation: BTC and ETH are Highest

Of the total liquidations, the two largest crypto assets, Bitcoin (BTC) and Ethereum (ETH), were the main contributors. Bitcoin liquidations reached 32.85 million US dollars, while Ethereum recorded liquidations of 43.96 million US dollars.  

Liquidations in BTC and ETH also illustrate how dependent the crypto market is on the price movements of these two assets. 

These two assets are often the main indicators of market movements so that Bitcoin and Ethereum price fluctuations can trigger large-scale liquidations.

Crypto Market Liquidation: High Volatility

This phenomenon of large crypto market liquidations increasingly shows how high crypto volatility is. This market can experience extreme price movements in a short period of time, causing many traders to experience large losses. 

Traders involved in crypto trading, especially those using leverage, must be extra careful in monitoring price movements. 

Liquidations often occur due to excessively leveraged positions, where traders borrow funds to increase their exposure in the market. 

When prices move against expectations, liquidation occurs, and the funds lent by the exchange are taken back, causing huge losses for traders.

Read Also: 45% of Bitcoin Supply Yet to Move Amid Market Volatility  

How to Buy Crypto with Bittime

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Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.