The crypto market experienced significant overnight volatility following Binance’s settlement with the U.S. SEC, resulting in over $200 million worth of liquidations in the past 24 hours. Bitcoin, alone, saw liquidations surpassing $65 million in futures markets.
According to CoinGlass data, crypto perpetual futures positions worth $227 million were liquidated, with approximately 80% being bullish longs. Bitcoin longs and shorts, representing bets on both price rises and falls, faced over $67 million in liquidations, marking one of the highest events in 2023.
Ether (ETH) futures traders incurred losses of $27 million, while Solana’s SOL traders experienced $10 million in liquidations. BNB, associated with Binance’s ecosystem, saw comparatively smaller liquidations at $6 million.
Binance traders accounted for the most significant share of liquidations at $100 million, followed by OKX at $62 million.
Liquidation occurs when an exchange forcibly closes a trader’s leveraged position due to a loss of initial margin. Large liquidations can signal potential turning points in price movements, providing traders with insights into short-term shifts in volatility.
Binance, facing charges related to breaking sanctions and money-transmitting laws, agreed to a $4.3 billion settlement with the SEC, marking one of the largest penalties obtained from a corporate defendant in the U.S.
This information is not legal advice. Do your own research before making any decisions. Only invest what you can afford to lose and seek independent financial advice if needed. Understand the risks involved before purchasing any cryptoassets.