According to the on-chain expert, a huge number of futures positions, leveraged borrowing, and other margin-based bets were destroyed in this avalanche of liquidation. As a result, many investors lost part of their funds during this event.
Darkfost highlighted that this is a stark reminder that any leveraged position carries risk, regardless of how small the leverage appears despite the seeming smallness of leverage. However, by bringing investors’ focus back to the spot market, this liquidation event may also have a positive impact on the market.
At the time of writing, BTC’s price was trading at $115,165, demonstrating a more than 3% increase in the last 24 hours. Its trading volume has followed this gradual increase by rising nearly 5% in the past day.
