Crypto Market Sees Intense Volatility, Liquidations Reach $535M
The cryptocurrency market has experienced significant turmoil over the past 24 hours, with total liquidations reaching $535.53 million (₱31.2 billion) and affecting 169,591 traders. This surge in liquidations is largely attributed to the sharp decline in major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
Whales Accumulate Bitcoin
Despite the market downturn, Bitcoin’s price drop to $97,102, representing a 4.8% loss over 24 hours, has been driven primarily by long liquidations. This suggests that some investors, particularly whales, may be accumulating Bitcoin at lower prices. The largest single liquidation was an ETHUSDT position worth $17.74 million on Binance, highlighting the risks associated with leveraged trading.
Liquidation Breakdown
A closer look at the liquidation data reveals:
* Total Liquidations: * Bitcoin: $81.69 million * Ethereum: $98.30 million * Solana: $21.15 million * Dogecoin: $18.12 million * XRP: $11.55 million * Time-based Liquidations: * 1 hour: $4.70 million * 4 hours: $55.88 million * 12 hours: $447.22 million * 24 hours: $535.53 million * Long vs. Short Liquidations: * Long: $479.49 million * Short: $56.04 million
Exchange Breakdown
The exchange breakdown for the past 4 hours shows:
* OK: $22.66 million (84.69% Long) * Binance: $21.43 million (76.54% Long) * Bybit: $9.55 million (76.68% Long) * Cooperative: $990.73 thousand (82.17% Long) * CoinEx: $899.81 thousand (61.85% Short)
Understanding Liquidations
Liquidations occur when an exchange is forced to close a trader’s leveraged position due to insufficient margin. This typically happens when the market moves against the trader’s position, resulting in losses that exceed their posted collateral. Leveraged trading amplifies both potential gains and risks, making it essential for traders to manage their positions carefully.
Conclusion
The recent surge in liquidations highlights the risks associated with leveraged trading in the cryptocurrency market. As the market continues to experience volatility, it is crucial for traders to remain cautious and adapt to changing market conditions. The accumulation of Bitcoin by whales at lower prices may be a sign of a potential market reversal, but only time will tell.
Source: Bitpinas.com
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