Exchange Liquidations: Data Under-Reporting Impacts Market Analysis

IconCryptoNewsTerminal Staff30 Aug, 2024

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Exchange Liquidations: Data Under-Reporting Impacts Market Analysis

Exchange liquidations have been significantly under-reported for the past three years, according to crypto research firm K33 Research. This is due to changes in the websocket API of major exchanges such as Binance, Bybit, and OKX, which now only push a limited number of liquidations per second instead of all liquidations. This under-reporting has made it more difficult for analysts to gauge risk appetite and understand leverage ratios on exchanges. Liquidation data is a key input for these analyses, and the faulty data has led to an incomplete understanding of market participant behavior. As a result, market participants should be aware of this data under-reporting when making trading decisions. They should also consider using alternative data sources to get a more complete picture of the market.

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