Bitcoin Rally Triggers $110 Million in Liquidations in Futures Market
The recent rally of Bitcoin above the $28,400 level has resulted in a mass liquidation event in the cryptocurrency futures market. Over the past day, Bitcoin’s price has surged from $27,000 to above $28,000, breaking this level for the first time in over a month and a half.
Liquidations Surge Amidst Volatility
When Bitcoin experiences such sharp volatility, chaos ensues in the futures sector. According to data from CoinGlass, there have been numerous liquidations within the past 24 hours.
In the last day, the cryptocurrency futures market has seen liquidations totaling around $134 million. As most of the price action has been upward, it’s not surprising that the majority of these liquidations (almost $93 million) involved short contract holders.
Distribution of Liquidations
Bitcoin accounted for the highest share of liquidations, with approximately $56 million in contracts being flushed. Ethereum followed closely behind with about $36 million. Solana and Chainlink had a significant share among other assets but their liquidations were much smaller compared to Bitcoin and Ethereum.
This may be due to the increased focus on Solana and Chainlink as a result of their recent rallies, leading to more positions being opened on the futures market.
The Nature of Mass Liquidation Events
Mass liquidation events like this are not uncommon in the cryptocurrency sector due to its inherent volatility. The availability of high leverage on most platforms makes the futures market particularly risky for uninformed traders.
Hot Take: Bitcoin Rally Sparks Liquidation Frenzy
The surge in Bitcoin’s price above $28,400 has caused a frenzy of liquidations in the cryptocurrency futures market. With over $110 million in liquidations triggered, short contract holders have been hit the hardest. This volatile market environment highlights the risks associated with trading on leverage and serves as a reminder for traders to exercise caution and stay informed.
By
By
By
By
By
By