Data shows the cryptocurrency derivatives market has suffered a lot of liquidations as Bitcoin has gone through volatility in the past day.
Bitcoin Has Gone Through A Bit Of A Rollercoaster Over The Last 24 Hours
Bitcoin has seen some wild price action over the past day in which it has not only set a new all-time high (ATH) close to the $90,000 mark but also marked a low around the $85,000 level.
The chart below displays what the asset’s recent trajectory has been like.
The graph shows that since the $85,000 low, BTC has already bounced back to $88,500, which means its price has almost returned from the plummet.
Given that most of the coins in the sector closely react to movements in the value of the original cryptocurrency, their prices have also gone through similar volatility.
A consequence of all this sharp action has been that chaos has occurred on the derivatives side of the market, as speculators have scrambled to predict where the assets would head next, only for a large chunk of them to end up in failure.
Nearly $1 Billion In Crypto Has Just Been Liquidated
According to data from CoinGlass, many contracts have found liquidation during the past day. “Liquidation” refers to the process that any open contract undergoes after amassing losses of a certain degree, where its platform forcibly shuts it down.
Here is a table that displays the numbers related to the latest mass liquidation event in the sector:
The cryptocurrency derivatives market appears to have seen liquidations amounting to $973 million in the last 24 hours, out of which $580 million have been longs and the remaining $393 million shorts.
Interestingly, even though prices have seen a net increase for many of the assets inside this window, more investors betting on a bullish outcome have managed to get flushed.
This would naturally indicate that many traders rushed to get their bullish positions only after BTC grew to its recent high. Though the longs have had it bad, the shorts have certainly not been sparred, as their numbers are significant in their own right.
Regarding the contribution to the liquidations from the individual symbols, Bitcoin has predictably come out on top with over $270 million worth of contracts being involved in the event.
What’s worth noting, however, is that Dogecoin (DOGE) has managed to see more liquidations than Ethereum (ETH), even though the latter has the second largest market cap in the sector. That said, the difference between the two is barely half a million dollars.
DOGE’s high liquidations are likely to be a product of the explosive action that its price has seen, moving to end the day being up more than 21%.
