Crypto Market Observes $500 In Liquidations As Bitcoin Falls Under $36k |


Data shows liquidations in the crypto futures market have amounted to around $500 million over the past day as the price of Bitcoin plunges below $36k.

About $500 Million Liquidated In Crypto Futures Over Last 24 Hours

In case anyone’s not aware of what “liquidations” are, it’s best to first see a basic overview of crypto margin trading.

How To Get Free Crypto  
5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

When an investor opens a Bitcoin futures contract, they need to put down a minimum collateral, which is called the “margin.”

Against the margin, traders can decide to take on leverage. The leverage is a loan equal to many times their initial position.

The benefit of leverage is that investors can earn multitudes more profit if the Bitcoin price moves in the direction they bet on.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

Related Reading | No Bitcoin Please: Warren Buffett Says He Won’t Pay Even $25 For All The Bitcoins In The World

Coinbase Banner  

However, it also means that their losses are also magnified by the same amount as the leverage. When these losses eat up a specific percentage of the margin, the exchange forcefully closes the position.

This is what a liquidation is. The below table shows the data for crypto liquidations that occurred over the past day.

It seems like a large amount of liquidations have taken place today | Source: CoinGlass

As you can see above, almost $500 million in crypto futures was liquidated over the last 24 hours. $105 million of this got flushed out in the past four hours alone.

Since these liquidations were triggered by the price plummeting downwards, the majority of contracts involved were longs.

Mass liquidations like this one aren’t an uncommon sight in the crypto market. There are a couple of reasons behind this.

FreeBitcoin Banner  

The first, more important reason is that cryptocurrencies are usually very volatile, sometimes jumping even as much as 10% in the matter of a few hours.

Related Reading | Block Report: Cash App Bitcoin Sales Comes In At $1.73 Billion During Q1 2022

The other is the fact that many exchanges offer even as high as 100x leverage. High leverage naturally increases the risk of liquidation.

These factors together can make up an environment where uninformed margin trading can prove to be quite risky.

BTC Price

At the time of writing, Bitcoin’s price floats around $35.8k, down 8% in the last seven days. Over the past month, the crypto has lost 21% in value.

Here is a chart that shows the trend in the price of the coin over the last five days.

The price of BTC seems to have crashed down over the last day | Source: BTCUSD on TradingView

Yesterday, the price looked to be recovering a bit as it approached the $40k level, but it wasn’t long before it plunged down all the way to below the $36k level.

Featured image from, charts from,

Go to Source
Author: Hououin Kyouma

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.