The $19bn crypto meltdown shows mass liquidation risk is increasing, analyst says – DL News
- Crypto market wipeouts are getting bigger.
- Traders are taking on more leverage.
- Expect bigger liquidation events in the future, analyst warns.
The crypto market’s $19 billion liquidation last Friday was one for the record books.
In fact, it’s twice the amount liquidated in the next biggest market rout, which took place in April 2021, per Coinglass data.
According to Lucas Kiely, CEO of Future Digital Capital Management, a digital asset wealth manager, the risk of such mass liquidation events is increasing.
“This sell-off is a wake-up call for traders that high leverage is a very dangerous game in a market this illiquid and this close to a cycle top,” he said in a statement shared with DL News.
Liquidation is a process that occurs when…
