Data shows that the coded currency derivative sector has seen a collective liquidation event last day with bitcoin disruption and other assets.
The encryption market has witnessed long pressure over the past 24 hours
According to data from CoinglassA large amount of contracts was filtered during the past day. The position is said to be “dyed” when his platform decides to close it by force. The stock market does this when the pregnant woman collects losses that exceed a specific threshold.
There are two factors that can excite liquidation opportunities. The first is fluctuation. Very volatile assets can end up to both directions that it may be difficult to bet on the direction.
Volatility is not in the user’s hands, but the second factor, leverage, is. The “financial leverage” indicates an amount of loan that any investor can choose for his initial guarantees. The leverage can mean that the profits that the pregnant woman earns become more than sexual intercourse, but the same applies to losses, and thus the risk of filtering rises naturally.
In the encrypted currency market, each of these factors is always present, as metal currencies often display wild fluctuations within short windows and there is an abundance of speculators ready to bet.
The result of these conditions is that the comprehensive liquidation events, which are popularly called, occur regularly. One of these events has happened during the past 24 hours, as the table appears below.
Looks like the liquidations have heavily tended towards long contracts in this period | Source: CoinGlass
As visible, the total references related to the cryptocurrency reached 904 million dollars during the past day. Among these, including $ 811 million of flow, which represents nearly 90 % of the total, holding long contracts alone.
The reason behind the ranking is strongly towards merchants who are betting on an emerging result that naturally lies in the fact that Bitcoin and other origins witnessed an accident in this window.
Below is a heat map showing how the references considered when divided into the code:
The distribution of the liquidations by symbol | Source: CoinGlass
As shown above, Bitcoin has contributed to the largest class of liquidation at $ 261 million. ETHEREUM (ETH) ranked second at 113 million dollars and Solana (SOL) third with $ 39 million.
XRP (XRP) is larger in the maximum Sol market, but it is still worse in this scale, and perhaps because of the fact that the latter has seen a greater decline in prices.
It is interesting, although the long pressure occurred in the sector, the exchanges were not actually very heavy in terms of positions recently, as Glassnode referred to the Analysis Company at X mail.
The trend in the futures funding rate for the top five cryptocurrencies | Source: Glassnode on X
“Hour financing rates for the best 5 assets in the market ($ BTC, $ ETH, $ Sol, $ XRP, $ DOGE) show that appetite for long sites has not returned to the levels seen in November to early December, to early December,” Glassnode notes .
BTC price
At the time of this report, Bitcoin is traded at about $ 100400, a decrease of more than 4 % in the past seven days.
The price of the coin seems to have plunged over the past day | Source: BTCUSDT on TradingView
Distinctive image from dall-e, coinglass.com, glassnode.com, chart from TradingView.com
