Crypto market liquidations exceed $2 billion in 24 hours
Liquidations on cryptocurrency markets reached $2.058 billion over 24 hours.
According to 1news.az, this was reported by Binance News, citing data from the CoinGlass service.
In total, the positions of 329,000 traders were liquidated.
Liquidation in crypto trading is the forced closure of a margin position by an exchange. It occurs when losses on a leveraged trade exhaust the trader's collateral. This mechanism prevents the deposit from going negative and protects the platform from losses.
The liquidations are taking place amid a decline in the rates of major cryptocurrencies. As the Tockenpost portal writes, the total capitalization of the cryptocurrency market fell by nearly 5% over 24 hours, to $2.23 trillion.
On Sunday night, Bitcoin and Ethereum posted declines of more than 6% and 9%, respectively.
