Nearly $400 Million Liquidation Wave Hits Crypto Market Amid Bitcoin Surge
Bitcoin’s (BTC) recent surge has triggered a significant wave of liquidations across the cryptocurrency market, impacting traders holding short positions.
- Bitcoin price is at $79,400 at the time this article is written.
The numbers:
- In the past 24 hours, 135,107 traders were liquidated, with total liquidations amounting to $398.12 million (₱23.3 billion), as stated from the data at Glassnode.
- The largest single liquidation order occurred on Binance, involving the BTCUSDT trading pair and valued at $13.10 million.
What are liquidations? Liquidations occur when an exchange forcefully closes a trader’s leveraged position due to the inability to meet margin requirements. This often happens when the market moves against the trader’s position, causing losses that exceed the margin or collateral they have posted. (Read more: Bitcoin Futures Contract 101 | Bitcoin Philippines Guide)
- Leveraged trading: Traders often use borrowed funds to amplify their potential gains, a practice known as leveraged trading. While it can lead to substantial profits, it also increases risk.
- Margin calls: If the market price moves unfavorably, traders receive a margin call—a demand to add more funds to maintain the position. Failure to do so results in automatic liquidation by the exchange.
The wave of liquidations extended beyond BTC, affecting key altcoins like Ether (ETH) and Solana (SOL).
This is a developing story: Nearly $400 Million Liquidation Wave Hits Crypto Market Amid Bitcoin Surge
What else is happening in Crypto Philippines and beyond?
