Crypto News: Crypto market faces massive $137 million futures liquidations

The cryptocurrency market witnessed a substantial “long squeeze” that led to a hefty $137 million in futures liquidations, reports CoinGlass. A sudden downturn in Bitcoin’s price from just above $35,400 to around $34,000 served as the catalyst for this wide-scale sell-off.

Over 82% of the liquidations, summing up to about $113 million, were from long positions, indicating that many traders were betting on an increase in crypto prices. Bitcoin, being the market leader, was the hardest hit, with $40 million worth of futures contracts liquidated. Ethereum followed suit, albeit at a lesser volume, with $21 million in liquidations.

Amidst the altcoins, Solana (SOL) faced the highest number of liquidations. This comes as the cryptocurrency had seen a rise in interest from speculators. However, despite the liquidations, the market’s open interest remains elevated, implying that there could be more price swings and potential liquidation events on the horizon.

The volatility of the cryptocurrency market was highlighted earlier this week with a staggering $110 million in long positions liquidated in just a day. This was driven by significant price moves from major cryptocurrencies like Bitcoin and Binance. Bitcoin, for instance, soared to an 18-month high and then dropped by 4% all within 24 hours, stabilizing around $34,500.

On November 1, Bitcoin’s valuation briefly fell to $34.25K, only to rebound to the $36K mark the next day. During this tumultuous period, short positions suffered as well, with around $22 million worth liquidated, affecting over 51,000 traders. Overall liquidations reached $132.91 million, with Bitcoin accounting for the lion’s share.

Ethereum’s value also took a hit, causing $21.78 million in long position liquidations, while Solana saw $10.7 million wiped out. However, not all cryptocurrencies faced downturns, as Cardano and MASK saw their prices increase.

The most significant single liquidation occurred on the Bitmex exchange in the XBTUSD pair, with a $2 million position liquidated. Prominent crypto exchanges like Binance, OKX, Huobi, Bitmex, and Bybit were at the center of these substantial liquidations, reflecting the precarious nature of trading cryptocurrencies on margin.

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