Over $127 million in Bitcoin and Ethereum futures have been liquidated in the last 24 hours, according to data. Both cryptocurrencies’ prices have dropped by 6% and 7%, respectively, wiping away their recent gains.
According to Coinglass data, Bitcoin futures alone lost $57.78 million, meaning that most trading activity and open interest were limited to the most prominent cryptocurrency due to market capitalisation. Ethereum futures, on the other hand, lost $64 million.
When an exchange closes a leveraged position as a safety measure, it is known as a liquidation. It occurs when a trader’s initial margin is lost in part or all. This is most common in futures trading. Instead of spot trading, when traders hold the physical assets, this just tracks asset prices.
Bitcoin is currently down 5.85 percent on the day, according to CoinMarketCap data. It also implies that the major cryptocurrency is down 57.06 percent from its all-time high of $68,789.63, with a market value of $563.33 billion.
