Data shows a large amount of crypto long contracts have been liquidated as the Bitcoin price has plunged below the $66,000 level.
Crypto Market Has Faced $267 Million In Liquidations Over The Past Day
According to data from CoinGlass, a mass amount of liquidations have just occurred in the crypto market. A “liquidation” is a forceful closure that occurs when a derivatives market contract accumulates a loss of a specific percentage (as defined by the platform).
The risk of a contract being liquidated depends on how volatile the asset is behaving, as well as on how much leverage the trader has opted for. In the crypto market, coins tend to show volatility on a regular basis and contracts are usually leveraged, so it’s not uncommon for a mass amount of liquidations to take place at once.
During the past day, Bitcoin and other assets have seen some sharp price action and once again, liquidations have piled up on derivatives exchanges. Below is a table that shows the numbers related to this liquidation event.
Looks like the longs have taken the largest hit | Source: CoinGlass
In total, the crypto market has faced liquidations of nearly $268 million in the last 24 hours. Out of these, $188.5 million of the contracts involved have been bullish bets.
Long contracts being disproportionately affected by the event is naturally down to the fact that prices have overall moved down inside the window. Bitcoin has slipped under $66,000, while Ethereum is edging toward $1,900.
In terms of the contribution to the event by individual symbols, ETH has beaten BTC to the top spot this time around, as the below heatmap showcases.
How the liquidations have looked when broken down by symbol | Source: CoinGlass
Usually, Bitcoin racks up the highest amount of liquidations in the sector. Though, while behind this time, BTC with contracts amounting to $86 million is still almost level with ETH’s $88 million figure. Ethereum being ahead of the original cryptocurrency may be down to the fact that its price has seen a swing of a larger percentage over the past day.
In some other news, the Bitcoin spot exchange-traded funds (ETFs) are looking to end the week with net inflows, as data from SoSoValue shows.
The spot ETFs have so far been green for the latest week | Source: SoSoValue
During the last five weeks, the Bitcoin spot ETFs saw consecutive net outflows. It would appear, though, that the streak could break with the current week. So far, this week has seen net inflows of almost $815 million into the US funds.
BTC Price
Bitcoin is down to the $65,600 mark following its drop of 3% during the past day.
The trend in the price of the coin over the last five days | Source: BTCUSDT on TradingView
Featured image from Dall-E, chart from TradingView.com
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