According to the data, the entire cryptocurrency sector has seen a lot of liquidations following the volatility experienced by Bitcoin and other cryptocurrencies.
Bitcoin has recovered above $63,000 levels.
Bitcoin reacted positively to news that the U.S. Federal Reserve was cutting interest rates, with the price breaking through the $63,000 level.
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The chart below shows the asset’s recent performance.
According to the graph, with a 5% jump in the last 24 hours, the cryptocurrency appears to be not far from reaching the highest levels observed in August.
As is typical, the rest of the digital asset sector has also enjoyed a surge as this recent Bitcoin rally has taken place. Some altcoins, such as Solana (SOL) and Avalanche (AVAX), have managed to significantly outperform the leading coin.
As market volatility increased, so did the turmoil in the derivatives sector.
The cryptocurrency derivatives market witnessed $210 million in liquidations today.
According to data from CoinGlass, there have been a significant number of liquidations in the cryptocurrency derivatives markets over the past 24 hours. Liquidation here refers to the forced closure of all open contracts after accumulating a certain percentage of losses.
Here’s a table analyzing data related to liquidations in the sector over the past day:
As shown above, the entire cryptocurrency market has experienced over $201 million in liquidations in the last 24 hours. Of these, approximately $147 million of the flush is related to short contracts.
This means that short sellers were responsible for nearly three-quarters of all liquidations, which is not surprising since Bitcoin and other assets saw significant gains during this period.
Mass liquidation events like today’s are commonly known as “squeezes”. Recent squeezes have been primarily short-related, so they will be called short squeezes.
Such incidents are not particularly uncommon in cryptocurrencies, as most coins are highly volatile and speculation is generally very active. Combined with the fact that many speculators are not afraid to touch the leverage, large liquidations can easily occur.
The heat map below shows how recent compression has manifested itself in relation to the contributions of individual symbols.
Bitcoin topped the charts with $78 million in liquidations, more than double the $36 million for Ethereum, which came in second. Solana had the most liquidations of the rest, with $11 million.
Source: NewsBTC.com