Liquidations in the Crypto Market: A 24-Hour Analysis
Liquidations in the Past 24 Hours
In the past 24 hours, a total of $208.8 million in liquidations occurred across the crypto market. The activity affected 67,621 traders, with the most significant single liquidation order, valued at $5.42 million, taking place on Binance for the BTCUSDT pair, according to Coinglass.
Breakdown of Liquidations
Long liquidations accounted for $91.73 million, while short liquidations were slightly higher at $116.78 million. Bitcoin saw $68.71 million in liquidations, followed by Ethereum with $40.27 million. Among exchanges, Binance led with $101.73 million in liquidations, followed by OKX at $56.90 million and Bybit with $19.06 million.
Market Activity
More shorts were liquidated yesterday evening as Bitcoin rose toward $64,000. However, a retracement to around $62,700 saw longs liquidated early this morning.
Total Liquidations for June and July
The $116 million short liquidation was one of the largest in the past month, with July 8 being the highest at around $154 million. Total liquidations for June and July are shown in the following chart:
Total Liquidations June – July (Coinglass)
Conclusion
In conclusion, the crypto market has seen significant liquidations over the past 24 hours, with a total value of $208.8 million. This activity has affected 67,621 traders, with long and short liquidations occurring across various exchanges and asset pairs.
FAQs
Q: What is liquidation in the crypto market?
A: Liquidation refers to the forced closure of a trader’s position due to insufficient funds or margin calls.
Q: What causes liquidations in the crypto market?
A: Liquidations can occur due to various market factors, including price volatility, margin calls, and trading losses.
Q: How do liquidations affect traders?
A: Liquidations can have a significant impact on traders, resulting in significant losses and potentially even bankruptcy.
Q: What is the significance of the largest single liquidation order?
A: The largest single liquidation order, valued at $5.42 million, highlights the impact of liquidations on individual traders and the market as a whole.
Q: What can traders do to avoid liquidations?
A: Traders can take steps to minimize the risk of liquidations by monitoring their positions, managing their risk exposure, and maintaining sufficient funds for trading.
Q: How can traders recover from liquidations?
A: Traders can recover from liquidations by taking a step back, reassessing their strategy, and rebuilding their trading capital.
Note: This article is for informational purposes only and should not be taken as investment advice. Cryptocurrency trading carries significant risks, and investors should do their own due diligence before making any trading decisions.
