Data shows $240 million in crypto futures has been liquidated over the past day as Bitcoin has slipped below the $39k level.
Crypto Futures Market Observes Almost $240 Million In Liquidations Over Last 24 Hours
Today, the prices of Bitcoin and other coins have suffered another hit, and the result has been a large amount of liquidations in the futures market.
As you may already know, a “liquidation” is when a crypto derivatives exchange forcefully closes up a futures contract because a certain amount of margin has been lost.
Leverage is easily accessible in the cryptocurrency market, and many exchanges offer even up to 100x the position.
While high leverage means investors can earn multitudes more in profit, it also enables them to quickly lose their margin as losses also get amplified.
Add to this the fact that the various cryptos (besides stablecoins) are generally highly volatile, and high leverage margin trading quickly becomes quite risky.
Related Reading | Data: Bitcoin Whales Are Increasingly Preferring OTC Deals Over Exchanges
Because of this, large liquidations in the market aren’t an uncommon sight to see. Below is the data for the cryptocurrency liquidations over the past day.
Looks like there has been a high amount of liquidations in the last day | Source: CoinGlass
As you can see in the above table, almost $240 million in crypto futures got liquidated over the past twenty-four hours. $185 million of these liquidations occurred in only the last twelve hours.
Related Reading | From The Ground: The Bitcoin 2022 Conference In Tweets From The Protagonists
These liquidations during the past day have come from about 80k futures traders. The largest individual liquidation has amounted to around $3.3 million.
Now, here is some data that shows the numbers for Bitcoin specifically:
BTC liquidations seem to have measured around $66 million in the last 24 hours | Source: CoinGlass
Over the past twelve hours, around $43 million in Bitcoin futures has been liquidated, which is around one-fourth the entire crypto market for the period.
Bitcoin Price
At the time of writing, Bitcoin’s price floats around $39k, down 5% in the last seven days. Over the past month, the crypto has lost 5% in value.
The below chart shows the trend in the price of the coin over the last five days.
BTC's price seems to have plunged down over the past day | Source: BTCUSD on TradingView
Since reaching above $47k late last month, Bitcoin has been on a decline. Earlier in the day, the crypto observed another plummet that took the price below $39k momentarily for the first time in more than a month.
The coin’s price has slightly recovered above the level since then, but it’s unclear whether the fall has stopped or if more is coming.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments