While the sharp rise in prices on the cryptocurrency market may make you want to expose yourself to leverage, the liquidation data reminds us of the risks of the practice. In fact, 840 million dollars were liquidated in 24 hours on the exchanges.
Liquidations continue on leveraged crypto products
In the wake of records in the cryptocurrency market, volatility has increased significantly, increasing the risk on leveraged positions.
On centralized platforms offering such products, this resulted in significant liquidations for around $840 million in 24 hours :
Figure 2 — Liquidations on derivative products from crypto exchanges
❌ What are the mistakes to avoid in trading?
Although the market is climbing sharply, it is interesting to note that liquidations on long positions still represent 46% of the amounts involved. On Bitcoin, the difference is more marked, because the number of short positions liquidated amounts to 32%.
Thus, this suggests that some of the traders may have bet with more conviction on the rise of certain altcoins. If the majority of volumes occur on BTC, to the tune of more than 34%, we can see that the share of tokens grouped in the “Other” category is also strongly represented:
Figure 2 — Distribution by assets of liquidations
According to Coinglass data, there are therefore approximately 263,000 traders who have seen their positions forcibly cut off on centralized platforms during the last 24 hours.
👉 Also in the news — +$10,000 in 24 hours, the price of Bitcoin (BTC) is close to $90,000 – What happened?
While positive news on the market accompanied by a rise in prices is quick to give rise to excess confidence, it is therefore essential not to expose yourself beyond your means. At the same time as writing these lines, BTC is trading at $86,700, up 5.7% since the day before.
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Source: Coinglass
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Since 2021, I have devoted my free time to seriously educating myself on cryptocurrencies in order to acquire maximum knowledge and credibility. I often have the opportunity to conduct interviews with influential figures in the blockchain industry. I also conduct in-depth analyzes on Web3 themes to offer exclusive content to Cryptoast readers.
Vincent Maire
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