Data shows a huge amount of liquidations have occurred on the crypto futures market today following Bitcoin’s sharp surge toward $37,000. Crypto Futures Market Has Registered Mass Liquidations During Past Day A futures contract is said to be “liquidated” when the derivative excha...
Data shows a huge amount of liquidations have occurred on the crypto futures market today following Bitcoin’s sharp surge toward $37,000.
Crypto Futures Market Has Registered Mass Liquidations During Past Day
A futures contract is said to be “liquidated” when the derivative exchange with which it’s open forcefully closes it up due to the position amassing losses of a specific degree (the exact percentage could differ from platform to platform).
In the cryptocurrency sector, the coins are generally quite volatile, and high amounts of leverage are accessible. The speculators choosing to let go can thus carry a significant risk.
Because of this reason, a mass amount of liquidations happening at once hasn’t been an uncommon occurrence when Bitcoin and other assets have shown sharp price action.
As the coins in the sector have gone through volatility again in the past day, liquidations have once more stacked up on the exchanges.
In the past 24 hours, the cryptocurrency futures market has registered liquidations amounting to almost $200 million. Out of these, more than $160 million came from short contracts (equivalent to about 81% of the market total).
The majority of this flush ($141 million) came within the last 12 hours alone, because of the fact that the value of Bitcoin was most volatile inside this window.
As is most often the case, BTC futures contracts have contributed the most towards this mass liquidation event, as the table below displays.
Though, even so, the distance that Bitcoin has on Ethereum, the second-ranked cryptocurrency, is more than usual this time. The $53 million difference in liquidations is likely down to BTC registering a sharper surge than ETH inside this period (4.3% vs 1.5%).
Bitcoin Price
With its latest rally, Bitcoin has finally lifted off the $35,000 level that had been acting as a major source of resistance for the coin. The asset is now knocking on the door of $37,000 for the first time since the start of May 2022.