#MarketCorrectionBuyOrHODL

Liquidation mainly occurs for futures traders. Liquidation is the forced closing of trading positions, and it is not specific to cryptocurrencies only, but it exists in any futures market, whether for stocks, currencies or crypto.

Futures are among the derivatives where traders speculate on the direction of the currency, they do not own Bitcoin, but they speculate on its future rise or fall, and if their bet is successful, they make money, and if it is not successful and the currency goes in the opposite direction, they lose.