February 27, 2021

Crypto-exchanges liquidated traders' positions for $ 1 billion in 24 hours

Crypto-exchanges liquidated traders' positions for $ 1 billion in 24 hours
More than 50 thousand users trading bitcoin and other leveraged coins suffered losses. A series of unsuccessful deals cost one of the traders $ 5 million

Over the past 24 hours, traders tradingcryptocurrency with leverage, lost almost $ 1 billion. According to the bybt.com service, in 24 hours the exchanges liquidated the positions of 52 thousand users. The loss of one of them amounted to more than $ 5 million.

Market fluctuations were the reason for liquidationscryptocurrencies. Over the past 24 hours, bitcoin has fallen in price to $ 32.3 thousand, and then it has risen in price to $ 35 thousand. Now BTC costs $ 34.8 thousand. Similar dynamics were shown by most of the leading digital coins in terms of capitalization, follows from the data from coinmarketcap.com.

Users trading with leverage canlose capital due to the forced closure of a position if the asset price moves in an unfavorable direction. For example, if a trader has opened a short position, that is, he is playing a fall, then liquidation may occur when the rate rises.
This means that the exchange will forcibly closeposition of the client and take the capital left by him as collateral. A similar outcome awaits a trader who has opened a long position and expects the asset price to rise - if it starts to fall, this can lead to the liquidation of the position and loss of the invested funds.

On January 11, the bitcoin rate collapsed by $ 10 thousand.in 27 hours. Against this background, the market experienced a massive liquidation of traders' positions. Users lost more than $ 2.5 billion, at least 26 thousand people suffered losses.

More details at RBC: