Crypto Futures See $300M in Losses After Spot Market Drops

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Nearly 80% of long crypto futures positions were liquidated over 24 hours with $90 million in losses on bitcoin futures alone, By shauryamalwa

from analytics tool Coinglass showed. More than109,000 traders’ positions were liquidated in the past 24 hours.

Bitcoin prices rose above $52,000 on Monday before tumbling as much as $3,000 early Tuesday, causing over $94 million in liquidations. Such figures were last seen earlier this month after bitcoin fell as low as $41,000 from highs around $69,000 in November. Losses due to liquidations exceeded $435 million at the time.Liquidations occur when an exchange forcefully closes a trader’s leveraged position as a safety mechanism due to a partial or total loss of the trader’s initial margin.

Nearly 80% of the $300 million in liquidations occurred on long positions, that is those belonging to traders betting on a price rise. Crypto exchange Binance saw $119 million in liquidations, the most among major exchanges, while traders on FTX took on $78 million in losses. Futures on ether, the native currency of Ethereum, saw over $57 million in liquidations. Losses on altcoin futures were lower, with Solana and Terra traders taking on slightly over $9 million in losses. The relatively smaller liquidation figures for altcoins, as compared with bitcoin, imply recent price surges for SOL and LUNA were mainly spot-driven.– the total number of unsettled futures or derivatives – for bitcoin dropped 0.

Data from Coinglass show $19 billion worth of futures positions on bitcoin remain open in the last week of 2021, and $11 billion worth on ether futures. The figures are several times higher than those for altcoins, with only solana futures carrying an open interest of over $1 billion into 2022 among large-cap cryptos.

 

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