Data: Bitcoin Crash Flushed Out $5.4B In Futures Within Hours

Data shows the crypto futures market has observed more than $400 million in liquidations during the last 24 hours as Bitcoin breaks above $23k. More Than $400 Million In Crypto Futures Liquidated In Only The Past Day A “liquidation” occurs when losses pile up in a futures contract and eat away a specific percentage of […]

Crypto analytics provider Glassnode argues the late February BTC crash may have been a healthy reset that flushed excessive leverage out of the market. According to on-chain analytics provider, Glassnode, the late-February crypto market correction may have purged excessive leverage from the markets.On March 1, Glassnode published a report analyzing the recent crypto crash — which was only the second significant crypto correction since the markets pushed into new record highs in late 2020.Glassnode noted the crash peaked with a 25% fall from the local top of $58,300 to $43,343. As such, the....

Data shows the crypto futures market has observed liquidations amounting to $280 million in the last 24 hours as Bitcoin broke above $22k. 76% Of The Crypto Futures Positions Liquidated In Past 24 Hours Were Shorts In case anyone is unaware what “liquidations” are, it’s best to first take a look at a brief explanation […]

Bitcoin fell to as low as $16,334 across major exchanges as cascading liquidations caused massive volatility. Bitcoin (BTC) price fell by a whopping 16% to $16,334 on Nov. 26 since achieving its peak at $19,484 the previous day. Data suggests that cascading liquidations were the driving force of the massive correction.Prior to the pullback, the open interest of the Bitcoin futures market hit a new record high. The derivatives market was also overheated with buyers, causing the market to sway to one side.BTC futures volumes. Source: Cointelegraph Markets, Digital Assets DataThe combination....

A staggering $5.64 billion worth of futures positions was liquidated in the last 24 hours as the price of Bitcoin dropped 17%. The price of Bitcoin (BTC) plummeted by more than 17% in the last 24 hours as the futures market saw mass liquidations across the board.Liquidations occur when leveraged futures positions fall to a certain threshold. For example, a position using 10x leverage would get liquidated or turn worthless if the price of BTC drops by 5%.What triggered the mass Bitcoin liquidation fest?If the Bitcoin futures market is highly overleveraged and overcrowded, a minor price....