Within a 24-hour period, the crypto market experienced a sharp downturn, resulting in over $287 million in liquidations across major exchange platforms. The majority of these liquidations came from long positions, impacting leveraged traders the most. Binance and OKX saw the largest amounts of liquidations. Bitcoin and Ethereum were the most impacted assets, with $80 million worth of BTC and $66.5 million worth of ETH liquidated, respectively. This mass liquidation was triggered by sudden and drastic price movements. The reliance on leverage in crypto trading and the imbalance of long positions indicate that many traders were caught off guard by the market's sudden shift. Some investors believe that more liquidations could occur if market volatility remains high, emphasizing the importance of risk management strategies and caution in the face of uncertainty.
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