A rapid burst of forced selling erased bullish leveraged bets across the crypto derivatives market in half an hour
Crypto traders betting on higher prices had a rough hour. Long positions worth $105 million were liquidated across the market in just one hour, with long positions chiefly responsible, contributing $97.56 million to the total. Bitcoin and Ethereum alone accounted for $23.08 million and $11.92 million, respectively.
What happened
A long position is a bet that an asset’s price will rise. When traders use borrowed money to make that bet bigger, they take on a liquidation risk.
Here is how it works. A trader puts up collateral, called margin, and borrows against it to control a larger position.
If the…
