The crypto derivatives market had a rough Wednesday. More than $315 million in leveraged positions were forcibly closed within a single 24-hour window, with long traders absorbing the overwhelming majority of the damage.
Bitcoin slipping below the $60,000 support level was the match that lit the fuse, and an over-leveraged market provided plenty of fuel.
# The breakdown, by asset
Bitcoin led the carnage, accounting for $152 million of the total liquidations. Of that figure, 92.91% were long positions, meaning traders who had bet on continued upside got caught badly offside.
Bitcoin breaking below $60,000 was the proximate cause. Large transfers of Bitcoin to centralized exchanges in the lead-up to the event added selling pressure, as on-exchange BTC typically signals that holders are preparing to sell rather than hold in cold storage.
The mechanics of what happened next are worth understanding. Perpetual futures liquidations do not happen in isolation. When a position is liquidated, the exchange sells the underlying asset to cover the debt, which pushes price lower, which triggers the next round of liquidations. The $315 million figure reflects where the loop settled before buyers stepped back in.
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Source
[https://www.usetranceai.com/markets](https://www.usetranceai.com/markets)
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