Cryptocurrency market, $301.6 million in leveraged positions liquidated within 24 hours

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In the past 24 hours, approximately $301.6 million (about 440 billion Korean won) worth of leveraged positions in the cryptocurrency market have been liquidated.

According to current aggregated data, Ethereum (ETH) led the liquidations with $141.31 million, followed by Bitcoin (BTC) with $130.25 million. Other cryptocurrencies saw $30 million in liquidations, Solana (SOL) with $22.62 million, and XRP with $9.78 million.

4-hour liquidation data across exchanges / CoinGlass

Based on 4-hour intervals, Bitcoin (BTC) price dropped 2.04% to $67,594, with long positions liquidated at $11.82 million and short positions at $9.58 million, showing a relatively balanced liquidation between longs and shorts. Compared to other major tokens, this pattern is unique, indicating market participants have differing predictions about the direction.

XRP fell 4.11% to $1.4056, with $2.53 million in long liquidations and $135,280 in short liquidations within 4 hours. The long liquidation amount is about 18 times that of shorts, suggesting a large number of buy positions being liquidated during the decline.

Solana (SOL) decreased 3.29% to $86.45, with $1.71 million in long liquidations and $699,200 in short liquidations over 4 hours. The long liquidation ratio is approximately 71%, indicating investors holding long positions suffered significant losses in the downtrend.

Cryptocurrency liquidation data / CoinGlass

Notably, Dogecoin (DOGE) dropped sharply by 6.52% to $0.09726. Within 4 hours, $839,520 in long liquidations and $92,060 in short liquidations occurred, with long liquidations exceeding 90%.

SUI declined 6.70% to $0.9319, with $520,440 in long liquidations and $49,800 in short liquidations. Bitcoin Cash (BCH) also fell 6.35%, resulting in $165,470 in long liquidations.

Interestingly, PIPPIN token was the only one to rise 9.33% to $0.82674. During 4 hours, $147,750 in long liquidations and $47,260 in short liquidations occurred, indicating that even in an upward trend, over-leverage led to liquidations.

Tokens based on gold, such as XAUT, PAXG, and XAU, saw only slight declines of 0.27%, 0.30%, and 0.33%, respectively, demonstrating relative stability.

In the crypto market, “liquidation” refers to the forced closing of positions when traders holding leveraged positions fail to meet margin requirements. This large-scale liquidation can be seen as an indicator of increased volatility in the recent crypto market.

Summary by TokenPost.ai

🔎 Market Analysis

The $301.6 million liquidated in 24 hours has exerted downward pressure on the overall market. Ethereum and Bitcoin led the liquidation with $141.31 million and $130.25 million, respectively. Notably, most altcoins experienced long liquidation ratios exceeding 80-90%, indicating that over-leveraged buy positions were heavily cleared during the decline. Bitcoin’s long and short liquidations remained balanced, showing relative stability; meanwhile, gold-backed tokens declined less than 1%, serving as safe-haven assets.

💡 Strategy Highlights

• Short-term traders: Given the current high volatility, reduce leverage multiples and set conservative stop-loss points. Especially for altcoins, which carry higher liquidation risks, consider shrinking position sizes.

• Medium- to long-term investors: After large-scale liquidations, the market may temporarily enter oversold territory. Use phased buying strategies to find entry points at lows.

• Risk management: Bitcoin’s liquidation pattern differs from other tokens, with balanced longs and shorts, indicating uncertain directional trends. Entering after confirming clear trends is safer.

📘 Terminology Explanation

• Liquidation: In leveraged trading, the forced closing of a position when the margin collateral falls below a certain level due to losses. Long positions are liquidated when prices fall; short positions are liquidated when prices rise.

• Long Position: Buying a position expecting prices to rise. Losses occur if prices fall.

• Short Position: Selling a position expecting prices to fall. Losses occur if prices rise.

• Leverage: A multiple that allows larger trades with less capital. It amplifies gains but also increases the risk of losses.

TokenPost AI Notes

This article uses a language model based on TokenPost.ai for summarization. The main content may be omitted or may not fully align with actual facts.