The cryptocurrency derivatives market has been hit hard by the latest bearish continuation in Bitcoin and others as mass liquidations have hit exchanges.
Due to the volatility that Bitcoin and other assets have experienced over the last 24 hours, a huge amount of contracts have crossed this threshold. Below is a table that breaks down the relevant numbers related to these liquidations.
As is visible, cryptocurrency liquidations have totaled at $967 million inside this window, which is a pretty significant amount. Since the price action in the past day has majorly been in the bearish direction, the positions most affected would be the bullish bets. And indeed, as the data shows, $849 million of the liquidations, representing almost 88% of the total, involved long investors.
Ethereum has recently been dominating speculative activity in the market, and it seems the asset has topped the charts during this derivatives flush as well, with $309 million in liquidations. Bitcoin has come second with around $246 million.
According to Glassnode, the two large long squeezes could actually help prevent more such events in the near future. “This flush of leverage reflects a broad deleveraging event, often resetting market positioning and easing the risk of further cascades,” explains the analytics firm.
It now remains to be seen whether the liquidations will be enough to bring a calm to the market, or if there is more volatility ahead for Bitcoin and others.
At the time of writing, Bitcoin is trading around $109,200, down more than 6% over the last week.
