Major centralized exchanges (CEXs) have seen over $1.22 billion worth of crypto futures positions liquidated in the past 24 hours. The majority of these liquidations were long positions, accounting for $1.057 billion. Short positions accounted for the remaining $164 million. This surge in liquidations follows a sharp downturn in the crypto market, with Bitcoin (BTC) falling by over 7% in the past 24 hours. This wave of liquidations highlights the risks associated with crypto futures trading. Futures contracts are leveraged instruments, which means that traders can amplify their profits but also their losses. When the market moves against a trader's position, they may be forced to liquidate their position at a loss to cover their margin requirements. The recent market downturn has been driven by a number of factors, including concerns about the spread of the Omicron variant of COVID-19, fears of a potential interest rate hike by the US Federal Reserve, and profit-taking by investors. It is essential for traders to remember that the crypto market is very volatile and that they should only trade with capital they are prepared to lose. It is also important to use appropriate risk management strategies, such as stop-loss orders.

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