Forced Liquidation of Perpetual Crypto Futures Hits $102 Million in 24 Hours: How Bad is it?

IconCryptoNewsTerminal Staff23 Jul, 2024

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Forced Liquidation of Perpetual Crypto Futures Hits $102 Million in 24 Hours: How Bad is it?

The cryptocurrency market experienced a significant level of forced liquidations in perpetual futures contracts over the past 24 hours, amounting to $102.1 million. This occurred during a period of market volatility, where both Bitcoin (BTC) and Ethereum (ETH) faced a sell-off. Diving deeper into the details, Bitcoin recorded $35.27 million in liquidations, with 75.37% originating from long positions. Meanwhile, Ethereum witnessed a larger liquidation volume of $59.28 million, with 76.86% stemming from long positions. The liquidations were not limited to BTC and ETH. Other altcoins, such as Solana (SOL), also faced substantial liquidations, amounting to $7.55 million, with 79.39% originating from long positions. This surge in liquidations highlights the risks associated with leveraged trading in the cryptocurrency market. As prices fluctuate rapidly, traders who employ leverage may face significant losses if they fail to manage their risk effectively. To mitigate these risks, traders are advised to adopt a cautious approach when using leverage. They should only trade with capital they can afford to lose and set clear stop-loss orders to limit potential losses.

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