The Crypto Market Just Recorded The Biggest Liquidation Since The FTX Exchange Blowup

The Crypto Market Just Recorded The Biggest Liquidation Since The FTX Exchange Blowup
фото показано с : nulltx.com

2023-8-19 13:42

The recent sharp decline in Bitcoin’s price from $29k to $25k within 24 hours has sent shockwaves through the cryptocurrency market. This significant drop has resulted in the liquidation of 174,892 traders, amounting to a staggering $1.04 billion in total liquidations. 

Source: CoinGlass Biggest Liquidation Since FTX Collapse

Long positions totaling $843.83 million and short positions worth $196.13 million were affected, indicating widespread market turmoil. This event stands out as the largest liquidation day since the FTX exchange blowup, underscoring the magnitude of the market impact.

Source : CoinGlass Market Volatility

Several factors could have contributed to this substantial market movement. Volatility has always been a hallmark of the cryptocurrency space, with rapid price swings being a common occurrence. Market sentiment, influenced by external news, regulatory developments, and macroeconomic factors, can trigger panic selling or buying, amplifying price movements. Moreover, the interconnectedness of crypto exchanges and the prevalence of leveraged trading exacerbate the effects of such price drops.

Risks Of Leverage Trading

The scale of liquidations on both long and short positions suggests that traders from various perspectives were caught off guard by the rapid price decline. This highlights the inherent risks associated with leverage trading, where amplified gains can quickly turn into severe losses. It’s a reminder of the importance of risk management and the need for traders to exercise caution.

Need For More Cautious Risk Management

In the aftermath of this event, market participants may adopt a more cautious approach, reassessing their strategies and risk tolerance. This incident also underscores the necessity of robust risk management mechanisms and proper education for traders engaging in leveraged trading. As the cryptocurrency market continues to mature, such episodes serve as valuable lessons for both novice and experienced traders, emphasizing the unpredictable nature of the crypto landscape and the importance of staying informed and prepared.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!

Image Source: deagreez/123RF // Image Effects by Colorcinch

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Market.space (MASP) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Доступно / Всего 0 MASP

liquidation market hours cryptocurrency through sent shockwaves

liquidation market → Результатов: 126


Hacker Meets Karma: $600 Million Heist Culprit Faces $63 Million Liquidation In Crypto Drop

The Crypto market, known for its unpredictable nature, recently took another sharp downturn, shaking the foundation of many traders and speculators. This latest wave of liquidations, however, seemed to have swept up not just regular players but also an entity behind one of last year’s most significant crypto heists. The Great Heist And The Liquidation […]

2023-8-18 17:30


Bitcoin’s plunge to $26.1k triggers massive reset in crypto market dynamics

Quick Take The recent plummet of Bitcoin to $26. 1k was a massive liquidation event, underlined by significant changes in the cryptocurrency’s perpetual funding rate and open interest. The perpetual funding rate, a mechanism used by exchanges for perpetual futures contracts, which usually sees long positions periodically pay short positions when positive, has shifted into the […] The post Bitcoin’s plunge to $26.

2023-8-18 10:27


Crypto Liquidations Hit $180M As Bitcoin Nears $29,000

Data shows the crypto futures market has seen liquidations of nearly $180 million during the past day as Bitcoin has surged toward $29,000. Crypto Futures Market Registered High Liquidations In The Last 24 Hours The “liquidation” of a futures contract happens when the holder accumulates losses equal to a specific percentage of the margin (the […]

2023-6-21 17:00


Crypto Liquidations Hit $291 Million As Bitcoin Shows Volatility

Data shows the crypto futures market has seen liquidations amounting to about $291 million in the last day as Bitcoin has registered sharp volatility. Crypto Futures Market Has Seen A Large Amount Of Liquidations Today According to data from CoinGlass, the crypto sector has seen a largescale liquidation event in the past day. A “liquidation” […]

2023-3-23 17:30