Increased volatility in the market led to forced closures of both long and short positions
The amount of liquidations of traders' positions on cryptocurrency exchanges over the past 24 hours amounted to more than $174 million, according to the Coinglass service. In total, 85.5 thousand positions were liquidated, and the largest single liquidation occurred on the BitMex exchange for $3.86 million.
If, during margin trading, quotes go in the wrong direction as the trader expected, he begins to incur losses. Losses reduce the size of the margin, and when it decreases to a critical value, the trader receives a notification from the broker about the need to replenish the account. This notification is called Margin Call. If the account is not replenished and losses continue to grow, the broker will automatically close positions previously opened by the trader.
Increased volatility in the market led to forced closures of both long ($122.9 million) and short positions ($51.2 million). Including orders worth over $29 million for Bitcoin (BTC) and almost $26 million for Ethereum (ETH) were liquidated.
According to Coinmarketcap, the total capitalization of the crypto market has decreased by 1.62% over the past 24 hours. Of the largest altcoins by capitalization, the strongest decline was shown by Solana (SOL) - by 5.43%, Polkadot (DOT) - by 4.96% and Avalanche (AVAX) - by 6.67%. Cardano (ADA), Dogecoin (DOGE) and Chainlink (LINK) are down 3-4% on average.
Among altcoins, the most positions liquidated were Solana (SOL) at $12.33 million, Memecoin (MEME) at $9.56 million, and Ripple (XRP) at $7.21. Among exchanges, Binance ($5 million), OKX ($2.58 million) and Bybit ($1.11 million) are the leaders in terms of the amount of forcedly closed positions.$BTC $ETH $BNB
