{"id":26956,"date":"2025-01-28T06:38:26","date_gmt":"2025-01-28T06:38:26","guid":{"rendered":"https:\/\/www.bitrabo.com\/discover\/?p=26956"},"modified":"2025-01-28T06:38:26","modified_gmt":"2025-01-28T06:38:26","slug":"massive-liquidations-as-bitcoin-and-ethereum-plummet-over-800-million-in-long-positions-wiped-out","status":"publish","type":"post","link":"https:\/\/www.bitrabo.com\/discover\/massive-liquidations-as-bitcoin-and-ethereum-plummet-over-800-million-in-long-positions-wiped-out\/","title":{"rendered":"Massive Liquidations as Bitcoin and Ethereum Plummet: Over $800 Million in Long Positions Wiped Out"},"content":{"rendered":"\n

Recent data indicates that the cryptocurrency derivatives market experienced a significant liquidation event as Bitcoin and other cryptocurrencies fell sharply.<\/p>\n

<\/span>Mass Liquidation in the Crypto Market<\/span><\/h2>\n

Data from CoinGlass<\/a> reveals a substantial number of contracts were liquidated over the last 24 hours. A position is considered “liquidated” when the trading platform forcibly closes it due to excessive losses incurred by the holder.<\/p>\n

Two key factors contribute to the risk of liquidation. First, volatility plays a major role; a highly volatile asset like cryptocurrency can swing dramatically, making it difficult to predict price direction.<\/p>\n

The second factor is leverage, which allows investors to borrow against their initial collateral. While leverage can amplify profits, it can similarly increase losses, heightening the likelihood of liquidation.<\/p>\n

In the cryptocurrency landscape, these factors are frequently in play, causing significant price fluctuations and attracting high-risk speculators.<\/p>\n

This combination often leads to mass liquidation events, commonly referred to as squeezes, and one such incident has occurred in the past day, as illustrated in the table below.<\/p>\n

<\/p>\n

During this liquidation event, the total amount reached an astonishing $904 million, with nearly $811 million\u2014accounting for about 90%\u2014originating from long contract holders.<\/p>\n

The heavy liquidation of long positions correlates with the sharp decline in prices for Bitcoin and other cryptocurrencies during the same timeframe.<\/p>\n

Below is a heatmap illustrating the liquidations categorized by cryptocurrency:<\/p>\n

\"Bitcoin<\/p>\n

The data shows that Bitcoin was responsible for the bulk of the liquidations at $261 million, followed by Ethereum (ETH) at $113 million and Solana (SOL) at $39 million.<\/p>\n

Despite having a larger market cap, XRP was less affected in terms of liquidation value, likely due to a smaller price downturn relative to SOL.<\/p>\n

Interestingly, despite the long squeeze, exchanges have not shown a significant inclination towards long positions recently, as highlighted by analytics firm Glassnode in a post on X here<\/a>.<\/p>\n

\"Bitcoin<\/p>\n

Glassnode observes, \u201cThe hourly funding rates for the top 5 assets ( $BTC, $ETH, $SOL, $XRP, $DOGE) indicate that the interest in long positions has not rebounded to the levels witnessed during the rally from November to early December.\u201d<\/p>\n

<\/span>Current Bitcoin Price<\/span><\/h2>\n

Currently, Bitcoin is trading at approximately $100,400, reflecting a decline of over 4% in the past week.<\/p>\n

\"Bitcoin<\/p>\n","protected":false},"excerpt":{"rendered":"

Recent data indicates that the cryptocurrency derivatives market experienced a significant liquidation event as Bitcoin and other cryptocurrencies fell sharply. Mass Liquidation in the Crypto Market Data from CoinGlass reveals a substantial number of contracts were liquidated over the last 24 hours. A position is considered “liquidated” when the trading platform forcibly closes it due […]<\/p>\n","protected":false},"author":14,"featured_media":26957,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"slim_seo":{"title":"Massive Liquidations as Bitcoin and Ethereum Plummet: Over $800 Million in Long Positions Wiped Out - Bitrabo","description":"Recent data indicates that the cryptocurrency derivatives market experienced a significant liquidation event as Bitcoin and other cryptocurrencies fell sharply."},"footnotes":""},"categories":[316],"tags":[448,979,504,768,2552,561,2211],"class_list":["post-26956","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-bitcoin","tag-crash","tag-crypto","tag-ethereum","tag-longs","tag-million","tag-rekt"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/26956","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/comments?post=26956"}],"version-history":[{"count":0,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/26956\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media\/26957"}],"wp:attachment":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media?parent=26956"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/categories?post=26956"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/tags?post=26956"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}