Data shows the crypto derivatives market has suffered another large blow in the past day as the retrace in Bitcoin and others has squeezed longs.
Despite this recent squeeze, however, traders have once again been caught out by market volatility in the past day as liquidations have piled up on the various platforms.
Around $457 million of these liquidations, equivalent to 64% of the total, involved long positions. The derivatives flush has mostly been triggered by a decline in Bitcoin and company, so it makes sense that bullish bets have taken the brunt of the squeeze.
Overall, this mass liquidation event is significantly smaller than the one from last week, but that’s because excess leverage already saw a degree of reset then and the latest volatility hasn’t been quite as sharp.
In terms of the individual symbols, Ethereum was the coin that contributed the most toward the liquidations with more than $234 million in contracts involved. Bitcoin was second with liquidations of $168 million and Solana third with $42 million.
A mass liquidation event like today’s isn’t an uncommon sight in the crypto market, due to the fact that coins can be volatile and extreme amounts of leverage can easily be accessible. Even so, the recent liquidations have been extraordinary.
At the time of writing, Bitcoin is floating around $113,300, down about 6.5% in the last seven days.
