Liquidation in Crypto: Forced Closure of Perpetual Futures Contracts Surges

The cryptocurrency market has witnessed a significant surge in forced liquidations of perpetual futures contracts over the past 24 hours. Here's a breakdown of the data: Ethereum (ETH) Total Liquidation: $21.37 million Long Liquidation: $7.01 million Short Liquidation: $14.36 million Liquidation Ratio: Short 67.21% Bitcoin (BTC) Total Liquidation: $18.69 million Long Liquidation: $9.24 million Short Liquidation: $9.45 million Liquidation Ratio: Short 50.56% Dogecoin (DOGE) Total Liquidation: $9.07 million Long Liquidation: $4.8 million Short Liquidation: $4.28 million Liquidation Ratio: Long 52.87% The liquidation ratio indicates the proportion of liquidations that were short positions. A higher liquidation ratio for shorts suggests that more traders were betting on the decline of the market. These forced liquidations occur when traders fail to maintain sufficient margin in their accounts. When the market moves against their positions, the exchange automatically closes their contracts to minimize losses. The high level of liquidations indicates increased volatility and uncertainty in the cryptocurrency market.