Data shows that due to the crash of altcoins like Dogecoin and XRP, the cryptocurrency market saw significant liquidations in the past day.
The cryptocurrency derivatives market has just experienced a massive long liquidation.
According to CoinGlass, there have been significant liquidations in the cryptocurrency derivatives sector in the past 24 hours.
Here, 'liquidation' refers to the forced closing of contracts when the bets on any open contracts fail and accumulate a certain level of losses (the specific amount may vary by platform).
Below is a table breaking down the liquidation-related figures from the past day.
It can be seen that the total liquidation amount related to cryptocurrencies reached $1.56 billion in the past day. Among them, liquidations of long holders accounted for the vast majority, amounting to $1.39 billion, nearly 90% of the total. The reason for this massive liquidation is the collapse of the altcoin market, with many well-known currencies like XRP and Dogecoin experiencing double-digit price drops.
Many traders appear to have established bullish positions in the market, expecting the upward momentum brought by Bitcoin recently to continue. It is noteworthy that BTC successfully kept its losses under 2%, but other parts of the market have not been so fortunate.
Regarding the assets that led to the most liquidations, the heatmap below provides a detailed display.
In general, Bitcoin is usually the leader in market liquidations, but in terms of market capitalization, Ethereum is the second-largest cryptocurrency, with the largest contribution to liquidations, reaching $229 million.
After a $173 million liquidation of Bitcoin, Dogecoin and XRP experienced liquidations of $88 million and $68 million, respectively. The large-scale liquidations of these cryptocurrencies may be related to their popularity and the significant price drops they experienced.
Recently, speculative activities in the industry seem to be very active, with the total liquidation of small-cap assets (marked as 'others' in the heatmap) reaching $496 million.
