Crypto Futures Market Sees $78 Million in Liquidations as Bitcoin Surges
In the past 24 hours, the crypto futures market has experienced significant liquidations as Bitcoin makes a sharp surge towards $28,000. When a crypto futures contract is liquidated, it means that the derivative exchange forcefully closes the contract due to accumulated losses reaching a certain percentage. This often occurs due to high volatility in the market and investors using high leverage.
Mass Liquidation Event in the Past Day
The recent volatility in the crypto market has led to another mass liquidation event on the futures side. According to data from CoinGlass, over $78 million has been liquidated in the last 24 hours. Around 80% of these liquidations were short contracts, with Bitcoin accounting for the largest share at $31.5 million and Ethereum at $13.06 million. Interestingly, Loom Network (LOOM) ranked third despite its lower market cap.
Bitcoin Open Interest Rebounds
Following the liquidation flush, Bitcoin’s open interest has rebounded. This metric measures the total number of contracts associated with Bitcoin currently open on the futures market. The increase in open interest suggests that more speculators have entered the market despite previous liquidations. The high open interest could lead to further volatility and potentially more sharp price movements for Bitcoin in the near future.
Hot Take: Crypto Futures Market Experiences Volatility Amidst Bitcoin Surge
The crypto futures market has witnessed significant liquidations amounting to over $78 million in the last 24 hours as Bitcoin continues its surge. High volatility and leverage are contributing factors to these liquidations, with short contracts dominating the overall figures. Bitcoin’s open interest has also rebounded, indicating increased speculative activity despite previous liquidation events. This could potentially lead to further market volatility and impactful price movements for Bitcoin in the near future.
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