Crypto Liquidations Hit $7.8 Billion in 24 Hours as Volatility Persists

Crypto Liquidations Hit $7.8 Billion in 24 Hours as Volatility Persists

Massive Liquidations in Crypto Perpetual Contracts The cryptocurrency market has witnessed a massive wave of liquidations in perpetual contracts, with an estimated $7.8 billion worth of positions liquidated within the past 24 hours. Impact on Major Cryptocurrencies The bulk of the liquidations occurred in the following cryptocurrencies: Bitcoin (BTC): $241 million (long: $207 million, short: $33.89 million), liquidation ratio: long 85.95% Ethereum (ETH): $298 million (long: $265 million, short: $33.83 million), liquidation ratio: long 88.66% * Solana (SOL): $37.77 million (long: $27.17 million, short: $10.61 million), liquidation ratio: long 71.92% Market Volatility and Leverage The surge in liquidations is attributed to heightened market volatility and the use of excessive leverage by traders. The liquidation ratio, which indicates the proportion of long positions liquidated, highlights the dominance of long traders who were caught off guard by sudden price declines. Impact on Market Sentiment The heavy liquidations have created uncertainty and fear among investors, further suppressing market sentiment. Traders are advised to exercise caution, manage risk prudently, and avoid over-leveraging during periods of market volatility.