Volatility over the past 24 hours has caused a surge in liquidations on centralized exchanges, with bitcoin falling below $67,000 and the broader crypto market following suit.
According to CoinGlass, there have been over $427 million in liquidations in the last 24 hours on various centralized crypto exchanges. data. Of these liquidations, the vast majority, approximately $342 million, involved long positions.
Bitcoin BTC
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positions were hit the hardest, with more than $130 million in liquidations in the last 24 hours, including $90 million in long positions.
Liquidations occur when a trader’s position is forcibly closed due to a lack of funds to cover losses. This occurs when market movements are unfavorable to the trader’s position, causing their initial margin or collateral to be exhausted.
The wipeout of long positions occurred as Bitcoin fell below the $67,000 mark, after starting to trade above $71,000 yesterday. The largest cryptocurrency by market cap is down more than 4.2% in the past 24 hours, currently trading at around $66,500, according to The Block’s price page.
BTC/USD price chart. Image: Le bloc/TradingView
Meanwhile, the GMCI 30 index, representing a selection of the top 30 cryptocurrencies, fell 6.8% to 143.40 in the last 24 hours, with the second largest cryptocurrency, ether, having fallen 6.5% to $3,319.
Following the economic downturn, analysts at crypto trading firm QCP Capital said the options market had signaled the move, with liquidations led by large retail exchanges.
“Once again, the options market provided an early signal of a sharp bearish move, particularly the downward trend in risk reversals,” QCP analysts wrote Tuesday morning. report. “The speed of the movement is due to significant liquidations on retail exchanges like Binance, which saw perp funding rates fall from a high of 77% to a stable level.”
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