In just 24 hours, the crypto market has gone through a sharp downturn, which led to massive liquidations totaling over 287 million dollars across major exchange platforms. The bulk of these liquidations came from long positions, with leveraged traders feeling the brunt of this volatile market movement.
Binance saw the largest portion of liquidations, with 123.5 million dollars, followed closely by OKX at 120.3 million dollars. These losses are a reminder of the risks that come with trading in a market as unpredictable as cryptocurrency.
Bitcoin was one of the most impacted assets, however, the online crypto-gambling industry remained secure. When looking for online casinos Bangladesh, many have turned to crypto gambling sites. According to casino expert Joe Yarnold, online casinos in this country are gaining in popularity given that there are no land-based casinos in the country. These sites accept cryptocurrency instead of fiat currency, meaning players can deposit and withdraw in a crypto of their choice.
The loss of Bitcoin goes to 80 million dollars worth of BTC, which is equal to over 1,180 Bitcoin. Ethereum was also heavily hit, with 66.5 million dollars liquidated, which is equal to 25,390 ETH.
The phenomenon of mass liquidation is often triggered by sudden and drastic price movements, which can cause an avalanche of forced closures of positions. As Phoenix Group noted, “this kind of movement is a harsh reminder of the risks of trading with significant leverage.”
The largest individual liquidation happened to OKX, where a 6.5 million dollar position on the ETH/USDT pair was completely wiped out in seconds. Such moments of market turbulence only bring forth the importance of risk management, especially for traders who are heavily reliant on leverage to maximize gains during bullish runs. But when market sentiment shifts all of a sudden, these positions can change, leading to losses. The wave of liquidation you sow across the market illustrates the increasing dependence on leverage in crypto trading.
According to Phoenix Group’s data, a significant portion of liquidations came from long positions, which indicated traders were expecting the market to continue moving upward. On Binance, 64.81% of liquidated positions were long, while OKX saw 60.37% of long positions wiped out. This imbalance shows that many investors were caught off guard by the market’s sudden shift. It left them exposed to the risks of trading in such a volatile environment. The attraction of leverage lies in its potential to multiply gains during market upswings, but when markets turn south, the same mechanism can exacerbate losses.
Looking forward, some investors believe that more liquidations could occur if market volatility remains high. The increase in open positions (OI) is seen as a potential precursor to further price fluctuations, adding to the uncertainty in the market. This signals a need for caution, especially for traders who may be tempted to increase their exposure in the hopes of quick profits. Analysts are urging traders to reassess their risk management strategies and be prepared for future volatility, particularly in the context of broader macroeconomic uncertainties.
