NEWSLETTER
The data show that the cryptocurrency sector has witnessed a large amount of liquidations after the accident that bitcoin and the company have passed.
The cryptographic derivative market has just seen a long compression
According to data from HornThere has been a lot of liquidations related to cryptocurrency contracts on derivative platforms during the last day. The “liquidation” here refers to the overwhelming closure that any open contract suffers for its exchange after having accumulated losses of a certain degree (whose exact percentage depends on the platform).
There are mainly two factors that can significantly affect the possibilities of a contract of contract finding. The first is volatility. An asset that tends to be volatile is naturally more difficult to predict, so the risk of liquidation may be greater.
While volatility is something that is not really in the hands of an individual merchant, the second factor, the influence, yes. “Leverage” is an amount of the loan that any investor can opt against its initial position.
The advantage of leverage is that any gain obtained by the holder is multiplied by the same multiplier as the leverage. While this may sound lucrative, it is also true that any loss incurred becomes more because of the same magnitude. Therefore, a smaller price movement is needed in the direction opposite to the bet for the same position to be liquidated when the leverage is in the image.
In the cryptocurrency sector, currencies often show volatility and speculative demand can be heavy. The result is that mass settlement events, popularly known as tights, occur regularly.
bitcoin and the Altcoins have shown a strong price action during the last day, so it is not surprising to see that such an event has happened in the derivative market once more.
<img data-recalc-dims="1" decoding="async" class="alignnone wp-image-386204 size-large aligncenter" src="https://technicalterrence.com/wp-content/uploads/2025/02/Crypto-Liquidations-Break-2-billion-as-Bitcoin-Alts.png" alt="bitcoin & crypto settlements” width=”556″ height=”295″/>
The data for the liquidations that have taken place during the last 24 hours | Source: CoinGlass
As seen in the previous table, liquidations in the cryptocurrency derivatives sector have crossed the $ 2.32 billion brand in the last 24 hours. Even for market standards, this is a massive figure.
Around $ 1.93 billion of liquidations, equivalent to more than 83% of the total, have involved long holders. bitcoin and others have crashed in this window, so it makes sense that those who bet on a bullish result would be more affected.
Even so, the shorts have not been completely saved, since around $ 387 million positions associated with them have also closed with the rebound that btc has seen since its minimums.
Interestingly, although bitcoin usually leads the list of liquidations, ethereum (eth) has been first this time, with about $ 613 million in contracts related to it involved in the event.
<img data-recalc-dims="1" loading="lazy" decoding="async" class="alignnone wp-image-386229 size-large aligncenter" src="https://technicalterrence.com/wp-content/uploads/2025/02/1738602621_300_Crypto-Liquidations-Break-2-billion-as-Bitcoin-Alts.png" alt="bitcoin and other crypts” width=”785″ height=”358″ srcset=”https://bitcoinist.com/wp-content/uploads/2025/02/details.png?w=785 785w, https://bitcoinist.com/wp-content/uploads/2025/02/details.png?w=640 640w, https://bitcoinist.com/wp-content/uploads/2025/02/details.png?w=768 768w, https://bitcoinist.com/wp-content/uploads/2025/02/details.png?w=750 750w” sizes=”auto, (max-width: 785px) 100vw, 785px”/>
The breakdown of the latest liquidations by symbol | Source: CoinGlass
eth see almost $ 200 million more liquidations than the number one cryptocurrency is probably due to the fact that it has seen a much greater price reduction of around 16% during the last day.
bitcoin price
bitcoin has seen some recovery since its fall to the $ 92,000 brand, since its price is now floating around $ 95,300.
x/3mfVlScM/” alt=”bitcoin Price Graph” width=”1486″ height=”889″/>
Looks like the price of the coin has gone through a rollercoaster in the past day | Source: BTCUSDT on TradingView
Outstanding image of Dall-e, Coinglass.com, TrainingView.com graphics
