Crypto Futures Liquidations: $370M Erased in a 24-Hour Market Turmoil

Market Overview: The cryptocurrency market experienced a significant shakeout, with nearly $370 million in crypto futures liquidations occurring within 24 hours, primarily affecting Ethereum and Bitcoin.

Understanding Liquidations: Liquidations happen when exchanges close leveraged positions due to insufficient funds, often leading to increased market volatility and selling pressure.

Causes of Liquidations: These events are typically triggered by sharp price movements, which can stem from major news, large sell-offs, or the unwinding of over-leveraged positions.

Risk Management Strategies: To navigate such volatility, traders are advised to use lower leverage, set stop-loss orders, monitor funding rates, and maintain adequate margin to reduce the risk of liquidation.