More than $1 billion in futures were liquidated amid Evergrande tensions and cryptocurrencies prices plummet
A total of $1.2 billion in cryptocurrency futures was settled in the last 24 hours as global markets continue to decline, according to the Bybt analytics platform.
As of this writing, altcoins are beginning to rehearse a recovery. Bitcoin (BTC) is also trying to exit the red zone, up 2% on the morning of Tuesday (21). Since Saturday, however, the BTC has fallen 10% and is now trading at $43,310.
Ethereum (ETH), the second largest digital asset by market capitalization, has also fallen 12% since the weekend, falling to around $3,049 so far.
As a result of the ongoing decline, a wave of settlements was seen on cryptocurrency derivatives trading platforms.
This is because when markets are experiencing dips or spikes, over leveraged positions are automatically liquidated by brokers as traders can no longer meet their margin requirements.
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Naturally, long positions were responsible for most of today’s settlements. According to Bybt, 83.5% of the positions settled in the last 24 hours were from traders betting on higher prices, totaling a loss of almost half a billion dollars.
On the other hand, only $96.8 million in short positions were liquidated in the same period. In total, just over 205,000 traders lost their positions the day before, while the largest single settlement, valued at $10 million, took place on the BitMEX exchange.
With informations: Decrypt