In the past 12 hours, the cryptocurrency market has witnessed a massive liquidation, with a total value of up to $2.061 billion across the entire futures contract network.
Notably, the majority of the money that was wiped out came from Long positions, amounting to $1.958 billion, while Short positions accounted for only about $103 million. This disparity indicates that most investors are betting on an upward trend but have been caught off guard by unexpected market fluctuations.
According to data from CoinAnk, this wave of liquidation mainly focused on two leading coins in the market: Bitcoin (BTC) and Ethereum (ETH). Specifically:
BTC was liquidated for about 671 million USD
ETH was liquidated for about 884 million USD
BTC and ETH alone accounted for a large portion of the total liquidation value across the market. This shows that when these two key assets experience strong volatility, the domino effect will quickly spread, leading to a series of other leveraged positions being forcibly closed.
This large-scale long squeeze reflects a familiar reality: when market sentiment is too one-sided, risks will increase sharply. Many investors use high leverage with the expectation that prices will continue to rise, but even a strong correction can be enough to wipe out accounts in a short time.
This event serves as a clear reminder of the importance of risk management. In an unpredictable market context, failing to set stop-loss orders, using excessive leverage, or trading based on emotions can lead to significant losses for investors.
The crypto market always presents opportunities, but only for those who know how to manage risk and maintain discipline. After such billion-dollar liquidations, the question arises: will investors learn their lesson, or will they continue to repeat the cycle of 'euphoria - leverage - liquidation'?
$BTC $ETH $SOL #BTC #ETH #solana
