The total value of cryptocurrency contracts liquidated in the past 24 hours reached 383 million USD, with most being longing positions.
Data shows that the cryptocurrency market witnessed significant liquidation, with Ethereum accounting for the majority of the value, while Bitcoin was much lower in total liquidation.
- Over 383 million USD of cryptocurrency contracts were liquidated in 24 hours.
- Longing positions liquidated reached 295 million USD, overwhelming short positions.
- Ethereum was liquidated around 223 million USD, Bitcoin around 33 million USD.
How much contract value was liquidated in the cryptocurrency market in the past 24 hours?
Updated data from Coinglass recorded a total liquidation of contracts across the cryptocurrency network reaching 383 million USD within 24 hours.
This result shows significant market volatility and strong pressure on investment positions, especially in futures contracts or margin trading forms.
Which position was most liquidated in the recent cryptocurrency market?
Out of the total 383 million USD liquidated, around 295 million USD was from longing positions, while short positions only accounted for 87.38 million USD.
This reflects a price decline trend or technical pressures causing more forced liquidation of long-held buying positions. This is also an important indicator of market psychology and short-term actions.
How were Bitcoin and Ethereum liquidated in the cryptocurrency market?
Ethereum was liquidated with a value up to 223 million USD, much higher than Bitcoin's approximately 33 million USD in the same period.
This difference reflects Ethereum as an asset under strong pressure from margin trading or derivative contracts recently, while Bitcoin was relatively more stable or less liquidation-pressured.
The cryptocurrency market is experiencing a large liquidation, especially in Ethereum futures contracts, showing high risk levels and strong volatility.
Market Analysis, Coinglass, August 2023
What factors lead to large contract liquidations in the cryptocurrency market?
Contract liquidations primarily occur due to significant price volatility or technical events affecting the ability to maintain margin positions.
The 383 million USD liquidation in 24 hours reflects a sharp price decline or a mass stop-loss situation, frequently occurring when the market loses momentum or enters a deep correction phase.
How do contract liquidations affect cryptocurrency market psychology and trends?
Large liquidation waves often strongly impact investor psychology, stimulating subsequent volatility or temporarily changing price trends.
The overwhelming liquidation of longing positions suggests the market may be in a correction or strong regression phase after previous rapid increases.
Frequently Asked Questions
What is cryptocurrency contract liquidation?
Contract liquidation occurs when investors lack margin to maintain their position, leading to automatic contract closure to limit further loss risks.
What is the difference between long and short positions in contract markets?
A long position bets on price increases, while a short position bets on price decreases. Long position liquidation typically occurs when prices drop rapidly.
Why is Ethereum liquidated more than Bitcoin?
Ethereum usually has higher leverage and richer liquidity in derivative markets, leading to larger liquidation volumes when market volatility increases.
How do contract liquidations affect cryptocurrency prices?
Mass liquidations create strong selling pressure, potentially leading to short-term price declines due to supply exceeding demand in the market.
How to limit risks when trading cryptocurrency contracts?
Investors need to manage risks by using reasonable leverage, cutting losses at the right time, and regularly monitoring market fluctuations.
