• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
Bitcoinist.com
No Result
View All Result
Crypto Bitcoin
Nexo

Crypto Market Observes $500 In Liquidations As Bitcoin Falls Under $36k

Hououin Kyouma by Hououin Kyouma
2 weeks ago
in Bitcoin
0

Data shows liquidations in the crypto futures market have amounted to around $500 million over the past day as the price of Bitcoin plunges below $36k.

About $500 Million Liquidated In Crypto Futures Over Last 24 Hours

In case anyone’s not aware of what “liquidations” are, it’s best to first see a basic overview of crypto margin trading.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

When an investor opens a Bitcoin futures contract, they need to put down a minimum collateral, which is called the “margin.”

Against the margin, traders can decide to take on leverage. The leverage is a loan equal to many times their initial position.

The benefit of leverage is that investors can earn multitudes more profit if the Bitcoin price moves in the direction they bet on.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

Related Reading | No Bitcoin Please: Warren Buffett Says He Won’t Pay Even $25 For All The Bitcoins In The World

However, it also means that their losses are also magnified by the same amount as the leverage. When these losses eat up a specific percentage of the margin, the exchange forcefully closes the position.

This is what a liquidation is. The below table shows the data for crypto liquidations that occurred over the past day.

Bitcoin Crypto Liquidations

It seems like a large amount of liquidations have taken place today | Source: CoinGlass

As you can see above, almost $500 million in crypto futures was liquidated over the last 24 hours. $105 million of this got flushed out in the past four hours alone.

Since these liquidations were triggered by the price plummeting downwards, the majority of contracts involved were longs.

Mass liquidations like this one aren’t an uncommon sight in the crypto market. There are a couple of reasons behind this.

The first, more important reason is that cryptocurrencies are usually very volatile, sometimes jumping even as much as 10% in the matter of a few hours.

Related Reading | Block Report: Cash App Bitcoin Sales Comes In At $1.73 Billion During Q1 2022

The other is the fact that many exchanges offer even as high as 100x leverage. High leverage naturally increases the risk of liquidation.

These factors together can make up an environment where uninformed margin trading can prove to be quite risky.

BTC Price

At the time of writing, Bitcoin’s price floats around $35.8k, down 8% in the last seven days. Over the past month, the crypto has lost 21% in value.

Here is a chart that shows the trend in the price of the coin over the last five days.

Bitcoin Crypto Price Chart

The price of BTC seems to have crashed down over the last day | Source: BTCUSD on TradingView

Yesterday, the price looked to be recovering a bit as it approached the $40k level, but it wasn’t long before it plunged down all the way to below the $36k level.

Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Hououin Kyouma

Hououin Kyouma

Loves to write, enthusiastic about cryptocurrency. Currently studying Physics at university.

Related Posts

Bitcoin

Bitcoin Pizza Day: Celebrating The $300-Million Pizza Order – And Other Fun Facts

9 hours ago
Cyprus

Cyprus Drafts Regulatory Framework For Cryptocurrencies

10 hours ago
Central Bankers, El Salvador flag

It Was Not A Bitcoin Event. Then, Why Were The Central Bankers In El Salvador?

22 hours ago
Microstrategy

MicroStrategy Stock Rallies 10% As CEO Saylor Predicts Bitcoin Will ‘Go Into The Millions’

1 day ago
CoinCorner's the Bolt Card, promotional image

The UK Goes Lightning: CoinCorner Offers The Bolt Card, Contactless BTC Payments

2 days ago
Argentina

Argentina NGO Spearheads Mission To Educate High Schoolers About Crypto

2 days ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.