9 hours 15 minutes ▪ 4 minutes read ▪ Written by Luc Jose A
The world of cryptocurrencies, known for its high volatility, has once again proven its unpredictable nature. In just 24 hours, over $287 million was liquidated on major exchange platforms. This number resonates as a warning to leveraged traders who are exposed to sudden and brutal market fluctuations. Bitcoin and Ethereum, two pillars of the crypto market, are not spared from this new wave of liquidations, and their valuations are being severely impacted.
Big tremors in the virtual currency market
In the past 24 hours, over $287 million was liquidated on major crypto exchange platforms. Long positions were particularly affected, with large liquidations occurring on platforms such as Binance ($132.55 million) and OKX ($120.37 million). Among the most affected cryptocurrencies, Bitcoin lost more than 1,180 BTC, or approximately $80 million. Ethereum, on the other hand, was not stranded with $66.52 million, equivalent to nearly 25,390 ETH, being liquidated. This situation once again highlights the risks traders face when relying on highly “leveraged” positions in such a volatile environment.
Investors also pointed to the largest retail liquidation ever recorded on OKX, with a $6.55 million ETH/USDT position wiped out in seconds. This type of mass liquidation is often caused by rapid market fluctuations enhanced by leverage. Therefore, according to Phoenix Group, which has been closely monitoring liquidation data, “this type of activity is a stark reminder of the risks of trading with significant leverage.”
Role and perspective of leverage
Beyond the raw numbers, this wave of liquidations speaks to the growing importance of leveraged positions in the crypto market. According to data provided by Phoenix Group, the majority of liquidations were due to long positions, with 64.81% of liquidated positions on Binance being long positions compared to 60.37% on OKX. This interest in leverage is explained by the opportunities leverage presents during bullish periods of the market, but also exposes traders to increased risk during sudden reversals.
Investors believe this situation could happen again if market volatility continues. Moreover, the increase in open positions (OI) is an important indicator that can indicate new volatile movements in the future. Therefore, caution is advised for traders and investors who urgently need to review their risk management. This situation also reveals the vulnerability of the cryptocurrency ecosystem in the face of sudden movements and global macroeconomic uncertainties.
This new wave of mass liquidations is a stark reminder of the extreme volatility of the crypto market and the dangers of leveraged trading. Highly “leveraged” positions, especially on major platforms, are veritable time bombs if prices move rapidly. Therefore, investors and traders should carefully monitor future movements, especially open position data, to avoid further catastrophic losses.
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Luc Jose A.
Toulouse Scientific Diploma and Certification Consultant Alila Blockchain Exam Rejoined 2019 Coin Tribune. Examining the potential of blockchain in the field of economics, and the relationship between public sensibilities and information providers that will bring about a certain evolution of the social system for learning economics. The month is about understanding blockchain and its opportunities. Analyze the purpose of reality, decipher trends in Marche, analyze innovative technologies and perspectives, and analyze social revolution in Marche.
Disclaimer
The views, ideas and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please do your own research before making any investment decisions.
