- 88,379 traders faced liquidation in the last 24 hours, with losses totaling $289.74M.
- Bitcoin dropped 6% to $61,592, driven by FOMC delays and Mt. Gox Bitcoin distributions.
- Centralized exchanges have seen over $400M in liquidations since June, with $190.97M recent losses.
The cryptocurrency market has seen a huge wave of liquidations in the last 24 hours, involving 88,379 traders. This sudden spike in liquidations resulted in a loss of around $289.74 million, highlighting the market’s volatility.
Institutional Investors and Liquidity Risks
The increasing involvement of institutional investors in the cryptocurrency field, like Fidelity and BlackRock, makes it vital to comprehend the dynamics underlying market liquidations.
Even if institutional portfolios are protected from some of the market’s extreme fluctuations, the danger of liquidation is still a serious concern. The huge leverage used in cryptocurrency trading magnifies market swings, making holdings more vulnerable to quick liquidation in volatile conditions.
Recent Market Movements and Liquidity Effects
Bitcoin, a significant market player, fell about 6% overnight to settle at $61,592. Several reasons contributed to this decline, including delays in the FOMC rate reduction, the distribution of Bitcoin from Mt. Gox to creditors, and significant withdrawals from Bitcoin ETFs. The larger cryptocurrency market has felt the blow, with roughly $500 million in long positions liquidated in the last 48 hours alone.
The consequences of these liquidations have been especially severe for controlled exchanges. Since early June, liquidations on various sites have reached $400 million, with $190.97 million coming in recent weeks.
The new wave of liquidations highlights the natural risks of leveraged trading, as well as the cryptocurrency market’s continuous volatility. With Bitcoin and other digital assets battling to recoup from their previous highs, traders are encouraged to proceed cautiously.
Read Also
The post Cryptocurrency Market Faces Massive Liquidations Amidst Market Turbulence appeared first on Crypto News Land.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed