Crypto Market Sees $1.56 Billion in Liquidations Amid Altcoin Crash
Data indicates significant liquidations in the cryptocurrency market recently, particularly affecting altcoins like Dogecoin and XRP.
Cryptocurrency Derivatives Market Sees Large Liquidations
According to data from CoinGlass, the derivatives segment of the cryptocurrency market has experienced substantial liquidations over the past 24 hours. The term "liquidation" refers to the forced closure of open contracts when losses reach a certain threshold, varying by platform.
A summary of the liquidation data is presented below:
Total liquidations amounted to $1.56 billion, with long holders accounting for $1.39 billion, nearly 90% of the total. This spike in liquidations correlates with a downturn in the altcoin market, where many popular cryptocurrencies, including XRP and Dogecoin, have seen declines exceeding 10%.
Traders had predominantly established bullish positions, anticipating continued upward momentum following Bitcoin's exploration of new highs. While Bitcoin's losses were limited to 2%, other assets faced greater declines.
The following heatmap illustrates which assets contributed most to these liquidations:
Typically, Bitcoin leads in market liquidations; however, Ethereum has contributed the most this time, with $229 million in positions. Bitcoin followed with $173 million, while Dogecoin and XRP experienced $88 million and $68 million in liquidations, respectively. These figures reflect their popularity and the extent of their recent price drops.
Additionally, small-cap assets categorized as 'others' contributed significantly, totaling $496 million in liquidations.
Mass liquidation events are common in the cryptocurrency sector, but the current situation stands out even among such occurrences. High volatility and speculative trading practices often lead to these events, especially given the recent surge in leverage usage within the derivatives market.
XRP Price
Currently, XRP is trading at approximately $2.09, having decreased nearly 15% over the past week.
