The post <a rel="nofollow" href="https://coinpedia.org/news/why-is-the-crypto-market-down-today-here-are-the-top-reasons/">Why is the Crypto Market Down Today? Here Are the Top Reasons</a> appeared first on <a rel="nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a> 
The cryptocurrency market is experiencing a significant correction following a tumultuous 24 hours that saw $200 million in liquidations across the network. This massive sell-off has affected over 97,000 users, with the most significant single liquidation order occurring on the <a href="https://app.coinpedia.org/company/bitmex" target="_blank" class="profile-details">bitmex</a> <img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/10122626/info_icon.svg" alt="information" class="info-icons"> <a href="https://app.coinpedia.org/company/bitmex" target="_blank"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/09190601/link.svg"></a> <a href="www.bitmex.com" target="_blank"> <img decoding="async" src="https://image.coinpedia.org/app_uploads/profile/1659785927056guhkoqf20z.png" class="company_logo_img" target="_blank"></a> bitmex arthur.hayes@bitmex.com Centralised Exchange <a href="https://www.bitmex.com" target="_blank"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/10161442/globe.svg"></a> <a href="https://www.linkedin.com/company/3580826" target="_blank"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/09190603/li.svg"></a> <a href="https://twitter.com/bitmex" target="_blank"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/09190602/tw.svg"></a> <a href="https://www.instagram.com/bitmex_dotcom/" target="_blank"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/09190603/in.svg"></a> <a href="https://www.reddit.com/r/bitmex/" target="_blank"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/10153059/rd.svg"></a> XBTUSD, valued at a staggering $3.86 million. 
<h2 class="wp-block-heading" id="h-understanding-crypto-liquidations">Understanding Crypto Liquidations</h2> 
Crypto liquidations occur when a trader’s margin account cannot sustain their open positions due to substantial losses or insufficient margin to meet maintenance requirements. This process, initiated by exchanges or brokerage platforms, forcibly closes the trader’s positions at the market price to cover losses and debts.&nbsp; 
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 The cryptocurrency market has experienced a correction from its recent rise. In the past 24h, the amount of liquidation across the entire network has reached $200 million, of which long positions liquidated $147 million. More than 97,000 users have been liquidated, and the…— Wu Blockchain (@WuBlockchain) <a href="https://twitter.com/WuBlockchain/status/1724238190553464923?ref_src=twsrc%5Etfw">November 14, 2023</a>
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Liquidation is aimed at preventing further losses for both the trader and the exchange, and it can happen automatically when certain margin thresholds are breached. Currently, Coinglass <a href="https://www.coinglass.com/LiquidationData">data</a> indicates that in the past 24 hours, 85,746 traders were liquidated, with total liquidations amounting to $174.87 million. 
The breakdown across various exchanges shows that Binance experienced $4.81 million in liquidations, with a majority being short positions, while OKX and Bybit saw $2.48 million and $1.10 million in liquidations, respectively. These liquidations predominantly affected long positions, indicating a significant shift in market sentiment. 
<h2 class="wp-block-heading" id="strong-the-current-state-of-the-crypto-market-strong">The Current State of the Crypto Market</h2> 
As a result of this extensive liquidation event, the cryptocurrency market has taken a bearish turn. All top 20 cryptocurrencies, previously in the green and displaying bullish sentiment, have dipped into the red. 
The market’s mood has shifted from greed to neutral and is presumably heading towards fear, reflecting investors’ cautious stance following this massive sell-off. This correction is a critical reminder of the volatile nature of the cryptocurrency market. Investors and traders are advised to remain vigilant and informed about market movements, as such drastic changes can occur swiftly and have widespread impacts.

Why is the Crypto Market Down Today? Here Are the Top Reasons

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