In the past 24 hours, the cryptocurrency market witnessed $588 million in contracts being liquidated, mostly from short positions.
Data from Coinglass shows that liquidation includes $84.2742 million in longing positions and $504 million in short positions, with Bitcoin and Ethereum accounting for most of the liquidation value.
- Cryptocurrency market liquidated $588 million in contracts in 24 hours.
- Short positions dominated liquidation, around $504 million.
- BTC and ETH were liquidated $130 million and $239 million respectively.
How did the cryptocurrency market develop in the past 24 hours?
The latest statistics from Coinglass on 18/8 indicate that the total value of cryptocurrency contracts liquidated in 24 hours reached $588 million. This number reflects significant liquidity pressure in the market, especially under the impact of strong price fluctuations.
Contract liquidation occurs when an investor's position does not meet the conditions to be maintained due to price volatility, leading to automatic position closure. In this case, the data demonstrates high risk and significant volatility in the cryptocurrency market.
How was the liquidation distributed between Longing and Short positions?
Out of the total $588 million in liquidated contracts, short positions were heavily affected with $504 million liquidated, equivalent to about 85.7%. Longing positions were liquidated at $84.2742 million.
This difference shows downward price pressure or positive profit-taking actions from traders betting on price decline. This is also an important technical signal warning of significant volatility for high-leverage strategies.
What were the specific liquidation volumes for Bitcoin and Ethereum?
Bitcoin was liquidated for a total of $130 million, accounting for nearly 22% of the total liquidation market. Meanwhile, Ethereum recorded liquidation up to $239 million, accounting for the majority with about 40.6% of the total.
This reflects the important role and significant influence of these two dominant currencies on the overall market trend, while also showing the high volatility of trading positions on BTC and ETH recently.
"Large-scale cryptocurrency contract liquidation reflects high volatility and the need to pay attention to investment risk management."
Cryptocurrency Market Expert Nguyen Minh Hoang, 2024
Frequently Asked Questions
What is cryptocurrency contract liquidation?
Contract liquidation is the automatic closing of a position when collateral assets are insufficient to meet requirements, aimed at limiting risks for margin service providers.
Why are short positions liquidated more?
Short positions are often liquidated when market prices rise quickly, preventing short sellers from maintaining margin or protective orders.
What does the high liquidation of Bitcoin and Ethereum mean?
BTC and ETH dominate due to their strong market influence, with high liquidation indicating significant price volatility and high investor risks.
How does liquidation information affect investors?
Large liquidations often lead to significant price volatility, requiring investors to carefully consider risk management strategies and avoid excessive leverage.
How can liquidation risks be minimized?
Managing leverage reasonably, closely monitoring price fluctuations, and setting stop-loss orders are ways to reduce liquidation risks.
