In the last 24 hours, approximately $483 million in positions for bitcoin and ether futures were liquidated as cryptocurrency values declined on Thursday, with ether traders facing the most significant losses.
The cryptocurrency market suffered further declines on Thursday morning, driven by uncertainty regarding the Federal Reserve’s upcoming interest rate decision. Bitcoin was trading at around $81,000, experiencing a roughly 3% drop over the past day, while ether saw a greater decrease of over 6%, settling at about $2,350. XRP and Solana’s $SOL both fell about 5%, and dogecoin witnessed a decline of around 6%.
According to data from CoinGlass, approximately $286 million in ether contracts were liquidated, compared to around $197 million in bitcoin contracts, during the early hours in Asia. Ether dropped approximately 6.4% to $2,356, while bitcoin lost about 3.2% to trade at around $81,000.
Liquidations occur when traders utilize borrowed funds, and a price movement results in insufficient collateral to maintain their positions. In such cases, exchanges automatically close the positions. For instance, someone using $1,000 to manage a $10,000 position could lose their collateral if the price shifts less than 10% against them.
These liquidations can intensify downward pressure on the market, compelling traders to exit their positions even if they had not intended to sell at that price.