[Source: Coinglass, Date: Today] Crypto markets experienced a significant downturn today, with over $1.15 billion in liquidations across major exchanges. This event resulted in substantial losses for leveraged positions, marking a challenging day for crypto traders globally.
Over 247,000 traders were liquidated within a 24-hour period, according to Coinglass data. Long traders faced the most significant impact, incurring losses exceeding $1 billion. This outcome followed a week of bullish sentiment, influenced by events such as Circle's IPO and the revival of U.S.-focused DeFi narratives.
Bitcoin (BTC) saw a decline of over 3%, trading at $104,700 during Asian afternoon hours. The exchanges Binance and Bybit recorded the highest liquidation volumes, totaling more than $834 million in liquidated trades.
Liquidations occur when traders are unable to maintain sufficient margin to cover their leveraged positions. Exchanges then close these positions to mitigate further losses, often leading to cascading effects during periods of market volatility.