By collecting and analyzing the '24-hour liquidation amount' data released every morning, and then comparing the highest and lowest prices of Bitcoin for that day, we have derived the following chart.
From the chart, we can see that when Bitcoin experienced a fluctuation of 6.99% on December 9th, the total liquidation amount across the network reached an astonishing $1.619 billion, setting a historical record for liquidations in over six months.
After the occurrence of the massive liquidation amount, despite the price starting to rebound, including the subsequent fluctuations, the liquidation amount in the market remained stable without significant increases or decreases.
This indicates that market investors maintain a high enthusiasm for futures investment and leveraged trading. When prices fluctuate dramatically, a large number of investors get liquidated.
Proper use of futures and leverage can yield significant results, but if the rules are not understood and leverage is abused, it can lead to even greater losses.
Therefore, when engaging in contracts and leveraged trading, it is crucial to first understand the rules, manage your positions well, aim for small gains, and accumulate slowly. Do not fantasize about achieving everything in one step or becoming rich overnight.
