Crypto Liquidations Cross $300 Million As Bitcoin Reclaims $102,000
Data shows the cryptocurrency derivatives industry saw significant liquidations over the past day as Bitcoin and other currencies rallied.
Cryptocurrency long and short liquidations are high today
According to data coin glassAmid market volatility, the cryptocurrency space has seen significant liquidations in the derivatives space.
“liquidationThis refers to any open position being forced to be liquidated after accumulating a certain degree of loss (the specific proportion may vary depending on the platform).
The table below shows data on liquidations that occurred in the cryptocurrency space over the past 24 hours.
As can be seen, total liquidations during this window were close to $306 million. Of that amount, $154 million of the contract is a long position and $151 million is a short position.
This very even split shows that no one side in the market is affected more than the other, which is interesting considering that Bitcoin and other coins have seen their prices rise rise in the past day.
It appears that traders have been eager to enter bullish positions with high leverage on this recovery rally, leading them to add to their long liquidation desks on any pullbacks on the way up.
In terms of a single symbol’s contribution to derivatives washouts, Bitcoin once again topped the list with nearly $98 million in liquidations.
Ethereum (ETH) and XRP (XRP) rounded out the top three with $37 million and $25 million in liquidations respectively. These top three also happen to be the top three in the currency circle. Market value list.
However, fourth place in liquidations does not match the market capitalization ranking, as Dogecoin (DOGE) is in fact right behind XRP, with contracts worth nearly $16 million. The memecoin’s large contribution to the squeeze may be because its popularity means speculators are more easily attracted than larger altcoins like Solana (SOL).
In some other news, Bitcoin holdings have recently declined relative to market capitalization, as analyst James Van Straten noted in X. postal.
“Open Interest” is a measure of the total number of Bitcoin-related derivatives positions currently open across all centralized exchanges. Heavy speculation often causes asset volatility, so the ratio of this metric to market capitalization should ideally remain low.
As is evident from the chart, the ratio surged to a high of 2.8% in November, but its value has since cooled to around 2.4%, which is a healthier level.
bitcoin price
Bitcoin’s latest recovery has continued over the past day, with its price reaching the $104,000 mark.
