During the past week, the market has experienced a very strained period of crypto liquidations, which has exceeded $1.47B. Both short and long positions have been affected, but long positions have had the most significant reduction.Â
Binance Leads in Liquidations
Due to these fluctuations in market prices, some of the biggest hit was taken by Binance, the largest cryptocurrency exchange by trading volume. About $745M worth of positions were closed on Binance. Out of this, $502M was from long positions, and $243M was from short positions. The gap indicates the market trend where most traders find themselves trapped in long positions expecting a price increase.
OKX Faces Heavy Losses
OKX also saw liquidation last week, where a total of $472M long and short positions were liquidated. Similar to Binance, with $337M longs being redeemed compared to $135M short positions were closed out. This shows the wider market sentiment, where many traders expected an up-trend that did not materialize.
Bybit and HTX Follow
Bybit exchange’s liquidation remained the third largest in the last 24 hours, but its numbers were lower than Binance and OKX. Bybit registered $118.8M in liquidations across the major trading instruments, with $84.1M from longs and $34.7M from shorts. At the same time, HTX faced $96.5M in liquidations: $68.1M from longs and $28.4M from shorts.
Smaller Exchanges Not Immune
Lesser-known exchanges such as CoinEx, BitMEX, and Bitfinex were not excluded from this particular volatility. CoinEx handled $30.3M in liquidations, with longs at $18.8M and shorts at $11.5M. As for BitMEX, it was liquidated at $12.2M, out of which $10.6M was longs and $1.6M shorts. The exchange with the least liquidation was Bitfinex, worth $4.9M, with $4.7M from the long and only $200K from the shorts.
Longs Took the Largest Hit
Conversely, long positions hit $1.02B worth of liquidations, and shorts resulted in $454.4M. This oddity suggests that many of the traders in the current list were caught off-guard when the market dropped, probably because they leveraged themselves heavily in a bid to ride the bull market. Since there are such huge liquidations across several leading exchanges, the market’s unpredictability remains dangerous for those who trade using leverage.
It is recommended to bring care in the market, especially when using leverage since dominant exchanges are good examples of how traders can be easily affected by fluctuating markets.
