Crypto Perpetual Futures Liquidation: Unpacking the Shocking 24-Hour Wipeout

Key Points

1. Crypto perpetual futures allow traders to speculate on cryptocurrency prices without owning the asset, and liquidations occur when traders cannot meet margin requirements due to adverse price movements.

2. In the past 24 hours, Ethereum (ETH) saw $149.83 million in liquidations, with 85.35% being long positions, indicating traders were betting on price increases that did not materialize.

3. Bitcoin (BTC) experienced $67.37 million in liquidations, with 77.18% being long positions, showing a similar trend of traders being caught off guard by price drops.

4. Solana (SOL) had $41.61 million in liquidations, with 92.18% being long positions, reflecting an extremely bullish bias that was severely punished by market volatility.

5. Frequent liquidations in crypto perpetual futures are attributed to high leverage, market volatility, and the lack of expiry dates, making positions highly susceptible to rapid price changes.