Crypto Futures Obliterated As $659 Million Lost in Bitcoin Crash
The cryptocurrency futures market has been hit hard in the past 24 hours as Bitcoin experienced a significant crash, resulting in a mass liquidation event. CoinGlass data reveals that nearly $660 million in futures contracts were liquidated in just one day.
During times of high volatility, chaos often ensues in the futures sector, and this recent crash was no exception. The data shows that long positions suffered the most, with approximately $568 million worth of contracts wiped out, accounting for 86% of the total liquidations in the last day.
The forceful closures were a direct result of the sharp drawdown following Bitcoin’s crash, which saw its price plummet to as low as $41,500. Interestingly, the majority of liquidations occurred within the last twelve hours, aligning with the peak volatility in the market.
Bitcoin-related contracts constituted the largest share of liquidations, totaling around $148 million. However, it’s worth noting that Ethereum (ETH) and Solana (SOL) also contributed significantly to the liquidations, with approximately $111 million and $34 million lost, respectively.
Mass liquidation events have been relatively common in the cryptocurrency sector, given the high volatility of most coins and the easily accessible leverage provided by exchanges. The interest in derivatives has grown in recent times, with the Bitcoin futures volume surpassing spot volume, especially in the second half of 2023.
Despite the initial crash, Bitcoin has shown signs of recovery and is currently trading around $42,700. The asset has retraced the entire price surge it experienced at the beginning of 2024.
It’s essential to note that this article is for educational purposes only and does not reflect the opinions of NewsBTC. As investing carries risks, readers are advised to conduct their own research before making any investment decisions.