Crypto Market Faces Over $400 Million in Liquidations Amid Token Decline
#DogeCoin #Doge #Liquidation $DOGE
In the last 24 hours, over $400 million in crypto long positions were liquidated as major tokens dropped up to 10%.
Dogecoin Takes a Hit
Dogecoin (DOGE) futures faced harsher losses than Bitcoin (BTC). DOGE saw $60 million in long trades liquidated, with its price falling over 10% before a brief recovery during Asian trading hours. The broader CoinDesk 20 Index (CD20) dropped 3.4%.
Liquidations Across Cryptos
Bitcoin long bets lost $47 million, while ether (ETH) saw $76 million in losses. Crypto longs overall faced $440 million in liquidations, driven by profit-taking and a stronger dollar.
DOGE Liquidation Breakdown
Almost all DOGE liquidations were from long positions, with only $600,000 in short positions liquidated. This marks the highest DOGE futures liquidations since May 2021, with over $44 million on Huobi, popular with Asia-based traders. Open interest in DOGE futures fell 16% to $600 million, with a bearish long-short ratio of 0.94.
Understanding Liquidations
Liquidation happens when an exchange closes a trader's leveraged position due to insufficient margin funds, leading to a partial or total loss of the initial margin.
Conclusion
The recent liquidations underscore the high volatility and risks of leveraged trading in the crypto market, especially amid significant market and economic shifts.
