The Liquidation Wave: Understanding the $370 Million Crypto Market Tidal Wave
The crypto world just got hit with a tidal wave, and it’s wiping out $370 million in liquidations in the blink of an eye. What’s going on? Here’s the scoop on why this is happening, how it works, and what you should be doing about it.
Understanding Liquidations
Liquidation, in this context, is what happens when an exchange steps in to close a trader’s leveraged position because their balance can’t support it anymore. This is pretty much what happens when the market moves against your bet. These forced sales can lead to even more price drops, creating a vicious cycle. That’s why watching crypto futures liquidations is so crucial—it’s like a pulse check on the market’s health.
Market Dynamics: What Just Went Down?
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