The cryptocurrency market experienced turbulence in the past 24 hours, with liquidation amounts reaching an astonishing $632 million. This total includes $436 million in long positions and $196 million in short positions. According to data from Phoenix Group, XRP leads with $65.32 million in liquidations, surpassing Bitcoin (BTC) and Ethereum (ETH). Additionally, MOODENG also saw over $11 million in liquidations affecting both long and short positions.
These liquidation levels send a clear warning about the volatility in the cryptocurrency market. Recent data indicates that traders were taken aback by sudden market changes, leading to significant imbalances in long positions. The high liquidation figures highlight the risks associated with trading in such a volatile environment and emphasize the necessity for robust risk management strategies.
Despite facing considerable volatility, Bitcoin's price remains a key driving force in the market, with the trading price of Bitcoin on OKX at $95,468 and Ethereum at $3,617 at the time of writing. Decentralized finance (DeFi) activity also remains robust, with the total value locked (TVL) in decentralized platforms reaching $192 billion.
The widely watched sentiment indicator 'Fear and Greed Index' currently shows a score of 80, indicating 'Extreme Greed', reflecting a strong bullish sentiment compared to a score of 83 a week ago and 70 a month ago. Meanwhile, the ongoing struggle between bulls and bears continues, with BTC bulls slightly trailing bears over the past day, at 48.51% to 51.49%.
Market participants are advised to act with caution, especially considering the high liquidation volumes and unpredictable price fluctuations. The current market sentiment dominated by extreme greed may further exacerbate market volatility. Analysts warn that while bullish market momentum may lead to price increases, it also raises the risk of sharp price corrections.
The recent liquidation situation in the cryptocurrency market highlights the inherent risks of leveraged trading during periods of high market optimism. As the market sails through this wave of extreme greed, traders and investors are encouraged to stay vigilant, balancing optimistic sentiment with strategic caution to successfully navigate future challenges.
"Cryptocurrency market liquidation reaches $632 million, XRP leads, warning of volatility risks" this article was first published on (BlockKe).
