Crypto Perpetual Futures Liquidation: Unveiling the Shocking 24-Hour Breakdown

Key Points

1. Crypto perpetual futures are leveraged contracts without expiry dates, and liquidations occur when traders' margin balances fall below maintenance levels, protecting exchanges and market solvency.

2. Bitcoin (BTC) saw $41.50 million in liquidations, with 58.09% being long positions, indicating a price drop that caught bullish traders off guard.

3. Ethereum (ETH) experienced $150.27 million in liquidations, predominantly from short positions (65.73%), suggesting a reverse short squeeze due to unexpected price rises.

4. Dogecoin (DOGE) had $19.94 million in liquidations, with 50.44% being long positions, reflecting its inherent volatility and susceptibility to sharp price movements.

5. The article emphasizes the importance of understanding liquidation events to grasp market dynamics and advises traders to use lower leverage and sufficient collateral to mitigate risks.