Crypto Derivatives Market Has Just Seen A Long Squeeze

Data shows the cryptocurrency sector has witnessed a massive amount of liquidations after the crash that Bitcoin and company have gone through.

Cryptocurrency liquidations have reached an astronomical high after the recent market crash. Data from CoinGlass reveals that a staggering $2.32 billion in crypto contracts have been liquidated on derivatives platforms over the past 24 hours.

This mass liquidation event, commonly referred to as a squeeze, is a result of the volatility and speculative demand seen in the cryptocurrency market. As prices fluctuate rapidly, those who have taken on high leverage positions face a greater risk of liquidation.

According to the table, liquidations have affected both long and short holders. However, with the market crashing, those betting on a bullish outcome (long holders) have been hit particularly hard, accounting for over 83% ($1.93 billion) of the total liquidations.

Despite the market crashing, Bitcoin has managed to rebound from its lows, leading to some short positions being liquidated as well, amounting to around $387 million.

Interestingly, while Bitcoin usually has the highest liquidations, Ethereum (ETH) has taken the top spot this time, with around $613 million in contracts related to it being liquidated.

This is likely due to ETH experiencing a much larger price drawdown of around 16% over the past day compared to Bitcoin's 7%.