- The crypto market saw an unprecedented liquidation event – nearly $800 million worth of leveraged futures positions were wiped out amidst extreme volatility and price surges.
- Major exchange Coinbase experienced significant service disruptions during the volatility, exacerbating market movements and liquidations.
- The event underscores the risks of trading crypto with leverage and highlights operational challenges exchanges face keeping platforms stable during major volatility.
The crypto market witnessed an unprecedented liquidation event over the past 24 hours. Nearly $800 million worth of leveraged futures positions were wiped out amidst extreme volatility. This article explores the factors that contributed to this staggering loss.
Massive Price Surge Precedes Historic Liquidations
The chaos began with a momentous price surge, with Bitcoin reaching $64,000 and Ethereum hitting $3,500 – highs not seen in years. As prices swung wildly, overleveraged traders found themselves caught off guard.
Operational Issues at Coinbase Add Fuel to the Fire
Major exchange Coinbase experienced significant service disruptions during the volatility. With users unable to access their accounts, panic spread as prices continued to fluctuate. This likely exacerbated market movements and liquidations.
$800 Million Gone in a Day
When the dust settled, an unprecedented $800 million worth of futures positions had been liquidated, with longs and shorts affected nearly equally. For context, the previous record was $1 billion in August 2023.
