Panic In The Crypto Market: 287 Million Liquidated In Just 24 Hours, Beware Of Leverage!

The world of cryptos, known for its volatility, has once again proven its unpredictable nature. In just 24 hours, over 287 million dollars were liquidated on major exchange platforms. A figure that resonates as a warning for leveraged traders exposed to sudden and brutal market movements. This new wave of liquidations spares neither Bitcoin nor Ethereum, two pillars of the crypto market, which have seen their valuations severely impacted.

A Major Shake for the Crypto Market

The last 24 hours have been marked by a liquidation of over 287 million dollars on the main crypto exchange platforms. It was particularly long positions that were affected, with significant liquidations on platforms like Binance (132.55 million dollars) and OKX (120.37 million). Among the most affected cryptos, Bitcoin saw about 80 million dollars disappear, representing more than 1,180 BTC. Ethereum, for its part, was not left behind with 66.52 million dollars liquidated, nearly 25,390 ETH. This situation once again highlights the dangers traders face when they rely on heavily “leveraged” positions in such a volatile environment.

Investors also point to the largest individual liquidation, recorded on OKX, where a 6.55 million dollar position on the ETH/USDT was wiped out in seconds. This type of mass liquidation is often triggered by sharp market movements, reinforced by leverage. Thus, “this kind of movement is a harsh reminder of the risks of trading with significant leverage,” according to Phoenix Group, which closely monitored the liquidation data.

The Role of Leverage and Perspectives

Beyond raw numbers, this wave of liquidations informs about the growing importance of leveraged positions in the crypto market. According to data provided by Phoenix Group, a large majority of the liquidations came from long positions: 64.81% of liquidated positions on Binance were long, compared to 60.37% on OKX. This interest in leverage is explained by the opportunities it offers during a bullish market period but also exposes traders to increased risks in the event of a sudden turnaround.

Investors believe that this situation could recur if market volatility persists. Moreover, the rise in open positions (OI) is a key indicator that could signal new volatile movements to come. Caution is therefore advised for traders and investors who must imperatively review their risk management. Such a situation also reveals the fragility of the crypto ecosystem in the face of sudden movements and global macroeconomic uncertainty.

This new wave of mass liquidations is a stark reminder of the extreme volatility of the crypto market and the dangers of leveraged trading. Highly “leveraged” positions, especially on major platforms, are genuine time bombs in case of a sharp price fluctuation. Thus, investors and traders should closely monitor upcoming movements, particularly data on open positions, to avoid further catastrophic losses.