$193M In Crypto Longs Bite The Dust As Bitcoin & Co. Go Volatile
Data shows a large amount of cryptocurrency longs have found liquidation in the past day after the volatility Bitcoin and others have gone through.
Bitcoin Price Action Has Been A Rollercoaster During The Last 24 Hours
Bitcoin has seen some wild price action during the past day, with its value observing both a low under $62,300 and a high of almost $65,600. The below chart shows how this latest volatility has looked like for the coin.
As is visible in the graph, the drop towards the low had come first, making investors think that BTC was continuing its recent bearish trajectory, but not too long after, the asset rebounded to its high.
Though, the number one cryptocurrency couldn’t sustain at its high, either, as it has since retraced to the $64,600 level. This means that the asset has actually overall ended up moving sideways in the last 24 hours.
The rest of the sector hasn’t been so lucky, however, as many altcoins have maintained negative returns in this window. With all this volatility in the assets’ prices, it’s to be expected that the derivatives side would have gone through some chaos.
Crypto Derivatives Has Registered Large Liquidations Over The Past Day
As data from CoinGlass would confirm, the cryptocurrency derivatives market has observed the liquidation of a large amount of contracts in this period. “Liquidation” here naturally refers to the forceful closure any contract undergoes if it amasses losses of a certain percentage.
Below is a table that shows the details related to the latest mass liquidation event in the digital asset sector:
In total, the cryptocurrency derivatives market has witnessed the liquidation of contracts worth $256 million over the last 24 hours. Around $193 million of these involved long positions, which is more than 75% of the total.
The liquidations being this lopsided is naturally down to the fact that most of the coins have gone down during this window. Even Bitcoin, which has recovered, did observe a steep drop at first.
In terms of the contribution to the event by the individual symbols, Bitcoin and Ethereum have once again topped the charts, with $72 million and $58 million in liquidations, respectively.
Solana (SOL) and XRP (XRP) appear to have seen the most speculative interest out of the rest, as they have followed up the top two cryptocurrencies with $18 million and $7 million in liquidations, respectively.
Mass liquidation events like this latest one aren’t exactly a rare sight in the cryptocurrency derivatives sector, due to the fact that prices can show volatility on the regular and extreme amounts of leverage is easily accessible on most platforms. As such, the market can be risky to navigate for the uninformed trader.