Data shows $170 million in crypto futures liquidations in the past 24 hours
The crypto futures market experienced a significant amount of liquidations on Wednesday, following a sharp surge in Bitcoin’s price. In the past 24 hours, around $170 million worth of liquidations were observed.
Main breakdowns:
- Grayscale’s victory against the SEC has sparked speculation of a Bitcoin ETF
- Bitcoin’s price surged to $28,000 but quickly retraced back to $27,400
- Despite the pullback, Bitcoin remains the best performer among the top 10 coins, with almost 6% profit
- The majority of the liquidations came from short contracts, amounting to $120 million
- The event can be described as a “liquidation squeeze” or a “short squeeze”
In the crypto sector, large futures liquidations are not uncommon due to the high volatility and accessibility of leverage. The recent liquidation event was triggered by a sharp rally, leading to a chain reaction of liquidations.
Hot Take
The crypto futures market experienced significant liquidations following a surge in Bitcoin’s price. While short contracts took the biggest hit, the event highlights the volatility and accessibility of leverage in the crypto sector. As the market continues to evolve, it’s important for traders to be aware of the potential risks and implications of such liquidation events.
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