Crypto Derivatives Exchanges Witness Significant Liquidations Following Market Volatility

Crypto derivatives exchanges have seen a significant increase in liquidations following recent market volatility. According to data from CoinGlass, over $500 million in contracts were liquidated over the past day.

The majority of these liquidations, at $438 million or 86%, involved long contracts. This is likely due to the sharp price drop in Bitcoin, which went from $67,700 to a low of $64,300 within a few hours.

The decline in price also led to a decrease in the Bitcoin Open Interest, a metric that measures the total amount of positions related to BTC on all derivatives exchanges. The indicator plummeted to $19.5 billion, which is roughly half the level it was at during the January peak of $38.3 billion.