Liquidations in the crypto market have amounted to more than $830 million over the last 24 hours, as Bitcoin has crashed below the $18k level.
$832 Million In Crypto Futures Was Liquidated During The Past Day
In case anyone is unaware of what a “liquidation” is, it’s best to get a brief understanding of the workings of margin trading first, before diving into the data.
When an investor opens a cryptocurrency futures contract on any derivative exchange, they first have to put forth some collateral, called the “margin.” This amount can be both in USD and in a crypto like Bitcoin.
Against this margin, the investor may choose to take on “leverage,” a loan value often many times more than the initial position.
The benefit of leverage is that if the price of the asset moves in the direction the contract holder bet on, the profits earned are then magnitudes more by the same factor as the leverage.
However, it’s also true that in the case the bet fails and the price swings the
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