The crypto market witnessed a tumultuous 24 hours between Oct. 1 and 2, seeing a massive liquidation spike. Around 85% of these liquidations were short positions, translating to $97.73 million in shorts liquidated in just a day. This rapid movement affected 29,510 traders, bringing the total liquidation value to $114.92 million. The most significant single liquidation order was observed on Huobi with the BTC-USDT pair, valued at $8.39 million.
Major exchanges like OKX, Binance, and Huobi were at the epicenter of these liquidations. They recorded liquidation values of $36.21M, $33.20M, and $27.79M, respectively. CoinEx, mainly, experienced a notable 97.94% of its liquidations in short positions. In contrast, other exchanges oscillated between 72% and 96% in short liquidations.
| Exchanges | Liquidations | Long | Short | Rate (Overall) | Rate (Short) |
|---|---|---|---|---|---|
| All | $114.56M | $17.05M | $97.51M | 100% | 85.12% |
| OKX | $36.21M | $6.52M | $29.68M | 31.61% | 81.99% |
| Binance | $33.20M | $6.10M | $27.11M | 28.98% | 81.64% |
| Huobi | $27.79M | $1.04M | $26.75M | 24.26% | 96.26% |
| Bybit | $10.94M | $2.98M | $7.96M | 9.55% | 72.79% |
| CoinEx | $4.88M | $100.37K | $4.78M | 4.26% | 97.94% |
| Bitmex | $593.91K | $100.82K | $493.10K | 0.52% | 83.02% |
| Bitfinex | $581.34K | $146.79K | $434.56K | 0.51% | 74.75% |
| Deribit | $367.16K | $68.72K | $298.43K | 0.32% | 81.28% |
Zooming into individual cryptocurrencies, Bitcoin was at the forefront of the liquidation charts. Within a mere 4-hour window, Bitcoin saw long liquidations amounting to $381.54K and short liquidations reaching a significant $1.87M. Ethereum wasn’t far behind, with its 24-hour shorts touching a high of $4.12M.
Liquidations refer to the compulsory closure of a trader’s position when market conditions move against their speculation, eroding the collateral they’ve posted. When trading any asset, including cryptocurrencies, traders can adopt two primary stances: ‘long’ or ‘short.’ In a long position, traders are essentially betting on an upward trajectory of an asset’s price. Conversely, a short position is taken with the expectation that the asset’s price will decline.
The mechanics of liquidation come into play when the market’s actual movement contradicts a trader’s position. For instance, if the market price rises when a trader has a short position or drops when they’re long, the position is liquidated to prevent further losses. This ensures the trader’s losses don’t exceed their initial margin or collateral. The dominance…
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