Crypto Futures Observe $323M In Liquidations As Bitcoin Plunges To $41k

2022-4-12 22:00

As the Bitcoin price crashes to $41k today, the crypto futures market has observed more than $323 million in liquidations over the past 24 hours.

More Than $323 Million In Crypto Futures Liquidate Over The Past Day

In case anyone isn’t aware of what futures “liquidations” are, it’s best to take a brief look at the workings of margin trading.

When an investor takes on a crypto futures contract, they have to first put forth a collateral, called the “margin.” This margin can be in any crypto or in fiat.

Against the margin, futures holders can decide to loan an amount multiple times their initial investment. This is called the “leverage.”

The benefit of taking leverage is that if the price of the crypto moves in the direction the holder has bet on, any profits earned will be multitudes more.

However, it also leads to much greater risk as any losses incurred will also be multiplied by the same amount as the leverage.

Related Reading | Bitcoin 2022 Recap, GA Day One. Morning: Mow, Saylor, Wood, Diop, & Ammous

When a specific amount of the margin is lost to losses, the derivatives exchange forcefully closes the position. This is precisely what a liquidation is.

Now, here is the latest data for liquidations in the entire crypto market over the past day:

There seem to have been a large amount of liquidations today | Source: coinglass

As you can see above, total liquidations in the crypto futures market has amounted to more than $323 million over the last 24 hours.

Related Reading | Bitcoin To Power The Future, How Block, Tesla, And Blockstream Will Build Mining Facility

In the past twelve hours, there has been around $217 million in liquidations, but almost $170 million of this was liquidated in the last four hours alone.

For Bitcoin specifically, total amount of liquidations has measured close to $90 million in the last day.

Bitcoin futures liquidation data over the past day | Source: coinglass

Here as well more than half the total liquidations have arrived in the last four hours alone as the price has taken a plunge to $41k.

Such large liquidations aren’t uncommon to see in the crypto sector due to the high volatility of the coins. There is also the fact that many derivatives exchanges offer even up to 100x in leverage, which significantly increases risks.

BTC Price

At the time of writing, Bitcoin’s price floats around $41k, down 11% in the last seven days. Over the past month, the crypto has gained 5% in value.

The below chart shows the trend in the price of the coin over the last five days.

Looks like the price of Bitcoin has taken a severe beating over the last twenty-four hours | Source: BTCUSD on TradingView Featured image from Unsplash.com, chart from TradingView.com

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Filecoin [Futures] (FIL) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $5.1636
Капитализация $0 Rank 99999
Цена в час новости $ 18.52 (-100%)

futures crypto liquidations past 323 million 41k

futures crypto → Результатов: 126


Bitcoin Surge To $37,000 Flushes $157 Million In Crypto Shorts

Data shows a huge amount of liquidations have occurred on the crypto futures market today following Bitcoin’s sharp surge toward $37,000. Crypto Futures Market Has Registered Mass Liquidations During Past Day A futures contract is said to be “liquidated” when the derivative exchange with which it’s open forcefully closes it up due to the position […]

2023-11-9 19:00


Фото:

Why Perpetual Futures Are Becoming Crucial Leverage Tools For Crypto Traders

Perpetual futures continue to dominate the crypto and Bitcoin market and now account for 92.4% of all futures trading volumes. This marks an improvement from 75% dominance in December 2020. Their low storage and delivery costs compared to other futures products is an important factor in this domination according to Glassnode analysts in their recent market analysis.

2022-4-27 17:30


Фото:

Litecoin Futures Could Hit $150 Million Volume In Three Months On Tomorrow’s New Exchange Listing

British based Crypto Facilities, a futures exchange platform has announced that it will be listing Litecoin Futures as a trading option from tomorrow. At present, Crypto Facilities is a regulated futures trading platform that gives users unhindered access to cryptocurrency trading, according to the Crypto Facilities website, users of the platform are able to trade long and short with ‘50x leverage’.

2018-6-21 18:30


Том Ли: причиной текущей коррекции является экспирация биткоин-фьючерсов

Аналитик с Уолл-стрит и сооснователь Fundstrat Global Advisors Том Ли убежден, что причиной стремительного падения цены первой криптовалюты на прошлой неделе стала экспирация биткоин-фьючерсов. Bitcoin futures may be fueling the «gut-wrenching» declines, Tom Lee says https://t.

2018-6-16 12:16