NEWSLETTER
The data show that the cryptocurrency derivative sector has seen a mass liquidation event on the last day as bitcoin and other assets have been blocked.
crypto Market has seen a long tight in the last 24 hours
According to data from HornA large number of contracts have been liquidated during the last day. It is said that a position is “liquidated” when its platform decides to turn it off by force. The exchange does this when the headline has accumulated losses that exceed a certain threshold.
There are two factors that can increase liquidation possibilities. The first is volatility. A highly volatile asset can end up fluctuating both in both directions that it can be difficult to bet on one direction.
Volatility is not in the user's hand, but the second factor, leverage, yes. “Leverage” refers to the amount of the loan that any investor can choose to assume its initial guarantee. The leverage can mean that the profits obtained by the holder become more crowds, but the same also applies to the losses, so the risk of liquidation increases naturally.
In the cryptocurrency market, both factors are generally always present, since the coins often show wild swings inside the short windows and there are a lot of speculators willing to bet high.
The result of these conditions is that mass settlement events, popularly called squeeze, occur regularly. One of those events has taken place in the last 24 hours, as shown in the table below.
<img data-recalc-dims="1" decoding="async" class="alignnone size-medium wp-image-379664 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2025/01/800-million-in-Crypto-Longs-Rekt-as-Bitcoin-Ethereum.png" alt="bitcoin & crypto settlements” width=”554″ height=”298″/>
Looks like the liquidations have heavily tended towards long contracts in this period | Source: CoinGlass
As is visible, liquidations related to cryptocurrencies have totaled up to $ 904 million during the past day. Of these, $ 811 million of the discharge, which represents almost 90% of the total, involved the long holders of contracts alone.
The reason behind the inclined settlements towards merchants who bet on a bullish result, naturally, is found naturally in the fact that bitcoin and other assets have witnessed a clash in this window.
Here is a heat map that shows how settlements have been seen when divided by symbol:
<img data-recalc-dims="1" loading="lazy" decoding="async" class="alignnone wp-image-379698 size-large aligncenter" src="https://technicalterrence.com/wp-content/uploads/2025/01/1738069546_957_800-million-in-Crypto-Longs-Rekt-as-Bitcoin-Ethereum.png" alt="bitcoin and other crypts” width=”784″ height=”361″ srcset=”https://bitcoinist.com/wp-content/uploads/2025/01/details.png?w=784 784w, https://bitcoinist.com/wp-content/uploads/2025/01/details.png?w=640 640w, https://bitcoinist.com/wp-content/uploads/2025/01/details.png?w=768 768w, https://bitcoinist.com/wp-content/uploads/2025/01/details.png?w=750 750w” sizes=”auto, (max-width: 784px) 100vw, 784px”/>
The distribution of the liquidations by symbol | Source: CoinGlass
As previously shown, bitcoin has contributed to most of the liquidations at $ 261 million. ethereum (eth) has been second at $ 113 million and Solana (Sun) third at $ 39 million.
XRP (XRP) is larger in market capitalization than Sol, but it has still had a worse place in this metric, potentially due to the fact that the latter has seen a greater price reduction.
Interestingly, although there has <a target="_blank" href="https://x.com/glassnode/status/1883854608826802654″ target=”_blank” rel=”noopener nofollow”>mail.
<img loading="lazy" decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2025/01/800-million-in-Crypto-Longs-Rekt-as-Bitcoin-Ethereum.jpeg" alt="bitcoin financing rate” width=”1800″ height=”1013″/>
The trend in the futures funding rate for the top five cryptocurrencies | Source: <a target="_blank" href="https://x.com/glassnode/status/1883854608826802654/photo/1" target="_blank" rel="noopener nofollow">Glassnode on x
“The hour financing rates for the 5 main assets of the market ($ btc, $ eth, $ sun, $ XRP, $ doge) show that the appetite for long positions has not returned to the levels observed in the November rally to early December, “Glassnode notes.
btc price
At the time of writing, bitcoin is quoted at around $ 100,400, more than 4% in the last seven days.
x/laftuyBo/” alt=”bitcoin Price Graph” width=”1486″ height=”889″/>
The price of the coin seems to have plunged over the past day | Source: x/laftuyBo/" target="_blank" rel="noopener nofollow">BTCUSDT on TradingView
Outstanding image of Dall-e, Coinglass.com, Glassnode.com, Chart of TrainingView.com
