Crypto Perpetual Futures Liquidation: Unveiling Dramatic Market Shifts

Key Points

1. In the last 24 hours, Bitcoin (BTC) saw $111.61 million in liquidations, with 59.41% from short positions, indicating a potential short squeeze.

2. Ethereum (ETH) experienced the largest liquidation volume at $137.84 million, with 64.35% from long positions, suggesting a long squeeze.

3. Solana (SOL) had $36.07 million in liquidations, with 77.28% from short positions, pointing to a strong bullish move or rebound.

4. Liquidation occurs when a trader's margin balance falls below the required level, often due to high leverage and sudden price movements.

5. Strategies to mitigate liquidation risks include using stop-loss orders, managing leverage, and practicing sound risk management.