According to Golden Finance, in the current situation where the cryptocurrency market is still shrouded in gloom, another shocking piece of data has hit the market – within the past hour, the total amount of margin calls across the entire network reached as high as 225 million US dollars. Among them, the amount of long position margin calls was 219 million US dollars, and the amount of short position margin calls was 6.0948 million US dollars. Long positions became the “disaster area” of this margin call wave. In terms of currencies, the margin call amount of ETH reached 63.8675 million US dollars, and that of BTC was 72.8034 million US dollars. The sharp decline of mainstream cryptocurrencies has caused heavy losses for investors.
Against the backdrop of Israel’s strike against Iran triggering a geopolitical crisis, the risk-averse sentiment in the global financial market has risen sharply, with the cryptocurrency market being the first to be hit. Previously, trader Aguila Trades has been carrying out the full liquidation operation of its 20x leveraged BTC long position, incuring losses of over 11.7 million US dollars. The large-scale margin call within the past hour has further highlighted the vulnerability of the market. As market panic spread, investors sold off their crypto assets one after another, causing prices to drop sharply and triggering a forced liquidation mechanism for a large number of highly leveraged long positions.
From the perspective of the overall market, the cryptocurrency market has been performing poorly recently. BTC has dropped below $105,000, SOL has fallen below $150, ETH has dropped below $2,600, and AAVE has dropped below $290. The market is filled with a strong sense of pessimism. Under this trend, investors are increasingly worried about the market outlook, and investors with long positions are under great pressure. Once there is a significant fluctuation in market prices, highly leveraged long positions are very likely to fall into a margin call crisis.
For cryptocurrency trading platforms, such a large-scale margin call event poses a severe challenge to their liquidity and stability. The platform needs to handle a large number of forced liquidation orders to ensure the normal operation of the trading system. However, in extreme market conditions, the platform may encounter problems such as transaction congestion and delays, which not only affect the user experience but also may raise users’ doubts about the platform’s security and reliability.
This margin call incident has once again sounded the alarm for all participants in the cryptocurrency market. In a market with extremely high uncertainty, investors should fully recognize the risks of cryptocurrency investment, especially the huge potential losses brought about by high-leverage trading. When conducting transactions, one should carefully assess their own risk tolerance, reasonably control positions, and avoid blindly following the trend and excessive speculation. At the same time, closely monitor factors such as the geopolitical situation, the global macroeconomic situation, and changes in regulatory policies for the cryptocurrency industry, as all of these will have a profound impact on the cryptocurrency market. In the current complex and volatile market environment, only by maintaining rationality and caution can one minimize risks as much as possible in the cryptocurrency market and protect the security of one’s own assets.
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