More than 500 million dollars were liquidated in the last 24 hours due to the drop in the price of bitcoin (BTC).
The quote of the currency created by Satoshi Nakamoto could not stay above $100,000 and ended up falling below $92,500.
Bitcoin’s poor performance also generated bearish pressure on altcoins that, in some cases, registered falls of more than 5%.
At the time of publication of this note, the price of bitcoin is $93,260.
As a result of the performance of BTC and the rest of the altcoins, The futures market reported million-dollar losses.
According to Coinglass explorer datain the last 24 hours more than 500 million dollars from 168,042 traders in leveraged positions in BTC and other cryptocurrencies.
Of that total, more than 344 million dollars correspond to long positions (long), that is, from those investors who were betting on a rise in the price of BTC and other cryptocurrencies.
The remaining $160 million, meanwhile, correspond to leveraged traders in short positions (shorts), who were betting on a price drop in the digital asset market.
As explained in Criptopedia, the educational section of CriptoNoticias, The term leverage in trading refers to a strategy which allows investors to increase their market exposure using borrowed capital.
In this way, investors can bet that the price of a digital asset will increase in price (long position) or decrease in price (short position).
If the price moves in favor, the investor can make large profits.
However, if the price moves in the opposite direction, the losses are greater. When this happens, if the investor does not have sufficient funds to meet the maintenance requirementsthe exchange or platform proceeds to liquidate that position.
Cryptocurrencies with the biggest falls
As mentioned above, most altcoins followed bitcoin in its bearish move.
The following image, provided by the CoinMarketCap portal, shows which have been the 10 with the greatest weekly drop (considering those that are among the 100 with the highest market capitalization):
a16z (A16Z), Virtuals Protocol (VIRTUAL) and THORCHain (RUNE) lead these drops. Keep in mind that altcoins, because they have a market capitalization much lower than that of bitcoin, tend to have greater volatility in their prices. That explains the large percentage drop they have had in the last week.
