The cryptocurrency market has recently experienced sharp fluctuations, with a single-day margin call scale approaching 1 billion US dollars. Macroeconomic uncertainties suddenly hit the market, causing highly leveraged long positions to be liquidated unexpectedly. The following is the detailed situation:
A single day saw a margin call of nearly 908 million US dollars, with long positions accounting for over 70%
According to Coinglass data, approximately 320,400 traders were liquidated in the past 24 hours, with a total loss of 907.7 million US dollars. Among them, the long positions betting on price increases suffered the most severe losses, reaching 720 million US dollars, accounting for 79.3% of the total margin calls. The short position lost 179 million US dollars. The largest single margin call occurred on the Bybit platform, where a $5.26 million BTC/USD contract was instantly wiped out. Bitcoin (BTC) has become the hardest-hit area, with margin calls reaching 318.2 million US dollars, among which long-term long positions accounted for 235 million US dollars and short-term long positions accounted for 82.6 million US dollars.
Macro risks and selling pressure from Mt. Gox have triggered market panic
The core triggers for this sharp fluctuation include the intensifying concerns over a macroeconomic recession and the selling expectations triggered by the Bitcoin transfer on the Mt. Gox exchange. The debankrupt Mt. Gox recently transferred 118.34 million BTC (about 931.1 million US dollars) and 332 BTC (about 26.6 million US dollars) in two batches. The market is concerned that more selling pressure will impact the price. Meanwhile, the movements of the Ethereum whales have also raised concerns: one address deposited 7,000 ETH (approximately 12.9 million US dollars) into the Kraken exchange, while another address transferred 21,000 ETH to Binance, which is suspected to be a selling signal.
The sharp decline of major currencies triggered a chain of liquidations
Influenced by the above factors, the maximum decline of Bitcoin within 24 hours exceeded 8%, and it once fell below the $100,000 mark. Ethereum dropped by more than 10%, hitting a low of $1,800. Highly leveraged positions were forcibly liquidated during the sharp price drop, creating a vicious cycle of “price decline – margin call – intensified selling”. The lending rate of USDT on DeFi platforms such as Aave once soared to 33.6% due to a sharp drop in liquidity, further amplifying market volatility.
Analyst: Short-term fluctuations may persist. Be cautious of liquidity risks
Weak macro data, coupled with the release of Mt. Gox assets, is heating up market concerns over tightened liquidity. Crypto market analyst Sarah Johnson pointed out, “Highly leveraged bulls previously overly relied on bull market expectations and ignored risks such as the policy shift of the Federal Reserve.” Although some institutions believe that the long-term narrative of Bitcoin remains unchanged, in the short term, more whale sell-offs and fluctuations in the derivatives market need to be guarded against. As of the time of publication, the market has shown a slight rebound, but there are still long contracts worth 230 million US dollars in the forced liquidation risk range within 24 hours.
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