The cryptocurrency market has seen a significant downturn, with Ethereum and Bitcoin long liquidations reaching their highest levels since August 5th. Ethereum long liquidations reached $55 million, while Bitcoin long liquidations hit $90 million, according to CryptoQuant.
Market Volatility Leads to $2.2B Drop in Open Interest
These numbers speak volumes about how volatile the current market positions are, which have started to decline. It has also been realized that the new surge in liquidations tends to affect the market in a number of ways.
A vast number of traders failed to hold their positions through the price volatility, and Open Interest significantly declined as a result. The total Open Interest in the market fell by $2.2 billion which suggests that the market have retraced some of its explosive growth.
Crypto Liquidations Reveal Market Instability and Risks
This wave of liquidations and the shift, as well as the subsequent decrease in the Open Interest level, demonstrate the instability of the cryptocurrency market. These are the events that occurred in the past and they remind everyone about the dangers of trading in such a highly risky environment.
The market has been seen reacting to these developments in recent times, and traders and investors are likely to proceed with care and caution, as per reported by CryptoQuant. As the market digests these developments, further liquidations could worsen the already volatile conditions.
Source: https://blockchainreporter.net/ethereum-and-bitcoin-long-liquidations-hit-145m-amid-market-volatility/