Massive Liquidations in Cryptocurrency Perpetual Futures – BTC and ETH Hit Hard
December 15, 2023
In the past 24 hours, cryptocurrency perpetual futures have experienced a significant wave of liquidations, resulting in substantial losses for traders. The liquidation figures for two of the most popular cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), have been particularly alarming.
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Bitcoin (BTC) Liquidations
Bitcoin saw a staggering $41.64 million in liquidations within the last 24 hours. The long positions accounted for $21.3 million, while the short positions stood at $20.34 million. This indicates a liquidation ratio of 51.15% for long positions, highlighting the extent of the losses suffered by traders in the BTC market.
Ethereum (ETH) Liquidations
Ethereum was not spared from the liquidation chaos either. The total liquidations for ETH amounted to $32.11 million, with long positions accounting for $17.1 million and short positions totaling $15.02 million. The liquidation ratio for long positions reached a staggering 53.24%, indicating the severity of the losses faced by ETH traders.
The massive liquidations in both BTC and ETH perpetual futures have shaken the cryptocurrency market and left many traders counting their losses. It is important to note that perpetual futures contracts differ from traditional futures contracts, as they do not have an expiration date. Instead, they allow traders to hold positions indefinitely, which makes them highly attractive but also exposes traders to greater risks.
While liquidations are not uncommon in the volatile world of cryptocurrency trading, the scale of the recent liquidations is cause for concern. Market experts believe that the liquidations were triggered by a significant price movement in the underlying assets, forcing leveraged positions to be closed automatically.
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Traders who had taken leveraged positions in the hope of profiting from price movements are now facing substantial losses. The liquidation process involves the automatic closure of the position when the trader’s margin falls below a certain threshold, ensuring that the exchange or platform is protected from losses. However, this also means that traders’ positions are closed at unfavorable prices, leading to significant losses.
As the cryptocurrency market continues to experience extreme volatility, it is crucial for traders to exercise caution and carefully manage their risk. Proper risk management strategies, including setting stop-loss orders and avoiding excessive leverage, can help minimize the impact of liquidations and protect traders from significant losses.
It remains to be seen how the market will recover from these massive liquidations and whether traders will be able to regain their losses. In the meantime, it is important for traders and investors to stay informed and stay vigilant in the ever-changing world of cryptocurrency trading.
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**Breaking News:** Cryptocurrency perpetual futures see massive liquidations in the past 24 hours:
BTC: $41.64M (Long $21.3M, Short $20.34M) Liquidation ratio: Long 51.15%
ETH: $32.11M (Long $17.1M, Short $15.02M) Liquidation ratio: Long 53.24%
ORDI: $9.58M (Long…— BitcoinWorld Media (@ItsBitcoinWorld) December 15, 2023
Source
@ItsBitcoinWorld said **Breaking News:** Cryptocurrency perpetual futures see massive liquidations in the past 24 hours: BTC: $41.64M (Long $21.3M, Short $20.34M) Liquidation ratio: Long 51.15% ETH: $32.11M (Long $17.1M, Short $15.02M) Liquidation ratio: Long 53.24% ORDI: $9.58M (Long… twitter.com/i/web/status/1…
