Crypto Liquidations Jump As Prices Fall
The ongoing crypto market crash coincided with a big increase in liquidations. CoinGlass data show that the 24-hour liquidations jumped by 100% to $700 million, the biggest increase in days.
More than 101,000 traders were liquidated in this period, with the biggest one being a Bitcoin trader whose $21 million was wiped out. Bitcoin positions worth $229 million were liquidated as it dropped below key psychological levels.
Liquidations occur when crypto exchanges are forced to close loss-making positions after the margin falls below the required threshold. In most cases, these liquidations create additional selling pressure, as exchanges must sell the affected coins to cover the losses.
