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Liquidation

Liquidation occurs when a trader’s collateral is no longer sufficient to cover their leveraged position’s losses, triggering an automated forced closure by the exchange's liquidation engine. It is a critical risk-management mechanism that ensures the solvency of lending protocols and derivative platforms. In 2026, the focus has moved toward MEV-resistant liquidation models that protect users from predatory "cascades." This tag provides essential information on maintenance margins, health factors, and how to avoid liquidation in high-volatility environments.

15554 Articles
Created: 2026/02/02 18:52
Updated: 2026/02/02 18:52
$113 Million Wiped Out In A Single Hour

$113 Million Wiped Out In A Single Hour

The post $113 Million Wiped Out In A Single Hour appeared on BitcoinEthereumNews.com. Massive Crypto Futures Liquidation: $113 Million Wiped Out In A Single Hour Skip to content Home Crypto News Massive Crypto Futures Liquidation: $113 Million Wiped Out in a Single Hour Source: https://bitcoinworld.co.in/crypto-futures-liquidation-impact-18/

Author: BitcoinEthereumNews

2025/10/30

Bitcoin Dips Under $110,000 After Fed Cuts Rates

Bitcoin Dips Under $110,000 After Fed Cuts Rates

The post Bitcoin Dips Under $110,000 After Fed Cuts Rates appeared on BitcoinEthereumNews.com. Ethereum and major altcoins fall as investors weigh the Fed’s move and trade uncertainty. The cryptocurrency market turned sharply lower on Wednesday after the Federal Reserve cut interest rates by a quarter point, marking its second reduction this year. Bitcoin (BTC) fell 3.6% to $110,663, while Ethereum (ETH) dropped 5% to $3,921. Other major coins also declined, with XRP down 3% to $2.60, BNB falling 2.6% to $1,105, and Solana (SOL) down 3.1% to $193. BTC Chart Despite the overall pullback, some coins saw strong gains. Official Trump (TRUMP) surged 17.9% to $8.25, Zcash (ZEC) rose 10% to $344.46, and pumpfun (PUMP) climbed 6%. The day’s top losers included Aster (ASTER), down 8.8% to $1.05, Cronos (CRO), which fell 7% to $0.1484, and Story (IP), down 5.4% to $4.89. The global cryptocurrency market capitalization is down 2% over the past 24 hours to $3.84 trillion, with Bitcoin dominance at 57.6% and Ethereum dominance at 12.3%. Liquidations and Market Flows Around $851 million in crypto positions were liquidated over the past 24 hours, according to Coinglass. Long positions accounted for about $658 million, while shorts made up $193 million. Bitcoin led the liquidations with nearly $282 million, Ethereum followed with $256 million, and Solana contributed over $80 million. Spot Bitcoin ETFs attracted $202 million in inflows on Tuesday, marking the fourth consecutive day of inflows totaling around $462 million. Spot Ethereum ETFs recorded nearly $246 million in inflows, marking the second consecutive day of inflows, according to SoSoValue. Fed Reserve Decision The Federal Reserve cut interest rates by 0.25% on Wednesday, bringing rates below 4% for the first time since late 2022. Officials said they are worried about the labor market, but don’t have full economic data because the government is shut down. Two Fed members disagreed: Stephen Miran wanted a…

Author: BitcoinEthereumNews

2025/10/30

Here’s Where XRP Price Is Headed in November

Here’s Where XRP Price Is Headed in November

It’s been a shaky stretch for Ripple’s XRP after the violent liquidation event earlier this month knocked the price below $2.50. Ever since, price action has been weak, choppy, and disappointing for those looking for a good bounce. But there is a silver lining that XRP price has once again formed a floor at $2.60

Author: Coinstats

2025/10/30

Staggering: $284 Million Futures Liquidated in One Hour – What Traders Must Know

Staggering: $284 Million Futures Liquidated in One Hour – What Traders Must Know

BitcoinWorld Staggering: $284 Million Futures Liquidated in One Hour – What Traders Must Know The cryptocurrency market has once again delivered a stark reminder of its inherent volatility, with a staggering event unfolding recently. In just a single hour, major exchanges witnessed an astonishing $284 million worth of futures liquidated. This sudden market movement sent ripples across the trading community, highlighting the high stakes involved in leveraged positions. Over the past 24 hours, the total figure swelled to an alarming $832 million in futures liquidations, underscoring a period of intense pressure for many traders. What Does it Mean When Futures are Liquidated? For those new to the crypto derivatives space, understanding what it means when futures are liquidated is crucial. Essentially, a liquidation occurs when a trader’s leveraged position is forcibly closed by an exchange. This happens because the trader’s margin (the collateral they put up) falls below a certain threshold required to keep the trade open. When market prices move sharply against a trader’s bet, the exchange automatically closes the position to prevent further losses that the trader cannot cover. Leverage: Traders use borrowed funds to amplify potential returns, but this also magnifies potential losses. Margin Call: If a position loses too much value, the exchange might issue a margin call, asking for more collateral. Forced Closure: If additional margin isn’t provided, or if the price drop is too rapid, the position is automatically liquidated. This mechanism protects both the exchange and other market participants, but it can be devastating for individual traders caught on the wrong side of a swift market swing. Why Did We See Such Massive Futures Liquidated Volume? The recent surge in futures liquidated volume points to a confluence of factors. Cryptocurrency markets are known for their rapid price movements, and even small triggers can lead to cascading effects, especially in highly leveraged environments. One primary driver is often a significant price correction or an unexpected market event that shifts sentiment dramatically. When a major asset like Bitcoin or Ethereum experiences a sharp dip or rally, it can trigger a domino effect. Traders holding long positions (betting on price increases) are liquidated during a downtrend, while those holding short positions (betting on price decreases) are hit during an uptrend. The sheer scale of recent liquidations suggests a broad market movement that caught many off guard, particularly those with high leverage and insufficient margin to weather the storm. The Impact on Traders and Market Sentiment Such large-scale liquidations have immediate and far-reaching consequences. For the traders whose positions were forcibly closed, it means significant financial losses, sometimes wiping out entire portfolios. This can lead to considerable emotional distress and a loss of confidence in the market. Beyond individual traders, these events also impact overall market sentiment. A wave of liquidations often signals increased volatility and uncertainty, causing other traders to become more cautious. This can sometimes lead to further selling pressure as participants de-risk their positions, creating a feedback loop that exacerbates price movements. Understanding these dynamics is key to navigating the unpredictable crypto landscape. Navigating Volatility: Actionable Insights for Traders While the prospect of having futures liquidated can be daunting, there are actionable steps traders can take to mitigate risks and better prepare for market volatility: Manage Leverage Wisely: Avoid excessively high leverage, as it amplifies both gains and losses. A lower leverage ratio provides more buffer against adverse price movements. Implement Stop-Loss Orders: Always use stop-loss orders to automatically close a position if it reaches a predefined loss threshold. This is a critical risk management tool. Diversify Your Portfolio: Don’t put all your capital into a single trade or asset. Diversification can help spread risk. Monitor Market News: Stay informed about macroeconomic events, regulatory changes, and project-specific news that could impact crypto prices. Maintain Sufficient Margin: Ensure you have enough collateral to cover potential losses. Be prepared to add more margin if market conditions turn unfavorable. These strategies are not foolproof but can significantly improve a trader’s resilience in volatile markets. Education and disciplined risk management are your best allies. Conclusion: Learning from Market Shocks The recent event, where hundreds of millions in futures liquidated in a flash, serves as a powerful reminder of the inherent risks and opportunities within cryptocurrency trading. While the allure of high returns through leverage is strong, the potential for rapid losses is equally significant. Successful navigation of these markets requires not just an understanding of technical analysis, but also a robust risk management strategy and emotional discipline. By learning from these market shocks and adopting prudent trading practices, participants can better protect their capital and build resilience against future volatility. Frequently Asked Questions (FAQs) Q1: What exactly causes futures to be liquidated?A1: Futures are liquidated when the market price moves sharply against a trader’s leveraged position, causing their margin (collateral) to fall below the exchange’s required maintenance level. The exchange then automatically closes the position to prevent further losses. Q2: Is a liquidation the same as a margin call?A2: A margin call is a request from the exchange for a trader to deposit more funds to meet the minimum margin requirement. If the trader fails to do so, or if the market moves too quickly, then a liquidation may occur, forcibly closing the position. Q3: How can traders protect themselves from being liquidated?A3: Traders can protect themselves by using lower leverage, setting stop-loss orders, maintaining sufficient margin, diversifying their portfolios, and staying informed about market conditions. These strategies help manage risk. Q4: Does a high volume of futures liquidated indicate a market crash?A4: A high volume of futures liquidated often indicates significant market volatility and a sharp price movement, which can be part of a correction or a more extended downturn. While not always a full crash, it signals strong selling or buying pressure and increased risk. Q5: Are futures liquidations unique to cryptocurrency markets?A5: No, futures liquidations are a standard mechanism in all leveraged derivatives markets, including traditional finance commodities, stocks, and forex. However, cryptocurrency markets often experience more extreme and rapid liquidation events due to their higher volatility and 24/7 nature. To learn more about the latest crypto market trends, explore our article on key developments shaping Bitcoin price action. This post Staggering: $284 Million Futures Liquidated in One Hour – What Traders Must Know first appeared on BitcoinWorld.

Author: Coinstats

2025/10/30

Silver slide mirrors Gold as liquidity, not demand, drives moves – TDS

Silver slide mirrors Gold as liquidity, not demand, drives moves – TDS

The post Silver slide mirrors Gold as liquidity, not demand, drives moves – TDS appeared on BitcoinEthereumNews.com. The decline in Silver prices is sharply linked to that seen in Gold, raising questions as to whether this is truly associated with our Silverflood thesis or whether it is simply a function of a consolidation in precious, TDS’ Senior Commodity Strategist Daniel Ghali notes. Speculative flows dominate as industrial demand stays weak “Silversqueeze and Silverflood are associated with a liquidity crisis, not demand. The price action in Silver is related to liquidations that are correlated to those seen in Gold, but convexity in price action is related to ebbs and flows in liquidity. Ultimately, we think we are currently seeing the single largest wave of repletion to London inventories on record, with the London free float potentially rising by roughly 50% from its October lows in just a few short weeks.” “In turn, Silver markets no longer need to discover the strike price at which metal will flood the London system from unconventional sources, which negates the fundamental driver of the bull market in Silver.” “Industrial demand remains notably weaker than at the start of the year, leaving speculative demand to drive the ebbs & flows in OTC Silver demand. Forms of export controls remain a threat to the market structure, including Sec232 tariffs, but we have less conviction that Silver will be subject to a threat of tarrifs than we do for PGMs, zinc, nickel, tin, cobalt and other critical minerals.” Source: https://www.fxstreet.com/news/silver-slide-mirrors-gold-as-liquidity-not-demand-drives-moves-tds-202510291454

Author: BitcoinEthereumNews

2025/10/30

Massive Crypto Futures Liquidation: $113 Million Wiped Out in a Single Hour

Massive Crypto Futures Liquidation: $113 Million Wiped Out in a Single Hour

BitcoinWorld Massive Crypto Futures Liquidation: $113 Million Wiped Out in a Single Hour The cryptocurrency market has once again demonstrated its unpredictable nature, with a staggering $113 million worth of futures liquidated in just the past hour. This rapid downturn has sent ripples across major exchanges, leaving many traders reeling. Such events highlight the inherent volatility and risks associated with leveraged trading in digital assets. Understanding Crypto Futures Liquidation What exactly is crypto futures liquidation? In simple terms, it’s the forced closure of a trader’s leveraged position by an exchange due to a lack of sufficient margin to cover potential losses. When market prices move sharply against a trader’s bet, their collateral (margin) falls below a certain threshold. To prevent further losses for both the trader and the exchange, the position is automatically closed. Over the past 24 hours, the scale of these liquidations has been even more significant, totaling an astonishing $658 million. This widespread impact suggests a broader market movement, affecting a multitude of traders across various platforms. Why Do These Massive Liquidations Happen? Several factors contribute to such dramatic liquidation events. The primary driver is often extreme market volatility. Cryptocurrencies are known for their wild price swings, and when these movements are amplified by high leverage, the risk of liquidation skyrockets. High Leverage: Traders often use leverage to amplify their potential returns, but this also magnifies potential losses. Sudden Price Movements: Unexpected news, macroeconomic shifts, or large institutional trades can trigger rapid price changes. Cascading Effect: Initial liquidations can push prices further, triggering more liquidations in a domino effect. Consequently, traders who fail to manage their risk effectively or maintain adequate margin balances are caught off guard. This leads to significant financial losses and contributes to overall market instability. The Impact on Traders and the Broader Market The immediate impact of a massive crypto futures liquidation is felt by individual traders who lose their capital. However, the effects extend beyond personal portfolios. Such events can create a climate of fear and uncertainty, potentially leading to further selling pressure in the spot market. Moreover, these liquidations often serve as a stark reminder of the risks involved in speculative trading. While the allure of quick profits is strong, the reality of sudden losses can be devastating. Understanding market dynamics and implementing robust risk management strategies are crucial for navigating these turbulent waters. Navigating Volatile Waters: Actionable Insights How can traders better prepare for or even avoid being caught in a crypto futures liquidation cascade? Here are some actionable insights: Manage Leverage Wisely: Avoid excessively high leverage, especially during periods of anticipated volatility. Set Stop-Loss Orders: These orders automatically close your position if the price reaches a certain level, limiting potential losses. Maintain Sufficient Margin: Always ensure you have enough collateral to withstand adverse price movements. Stay Informed: Keep abreast of market news, technical analysis, and global economic indicators that could influence crypto prices. Diversify: Do not put all your capital into highly leveraged positions on a single asset. By adopting these practices, traders can significantly reduce their exposure to the risks associated with futures trading and protect their capital from sudden market shifts. A Glimpse into the Future of Crypto Futures Liquidation The recent crypto futures liquidation events underscore a critical lesson: the crypto market remains a high-risk, high-reward environment. While innovation continues to drive growth, market participants must exercise caution and discipline. Regulatory scrutiny is also increasing, with authorities looking to implement measures that could potentially mitigate some of these extreme volatility events. For now, traders must rely on their own informed decisions and robust risk management frameworks to survive and thrive in this dynamic landscape. Conclusion: The $113 million liquidation in an hour, and $658 million over 24 hours, serves as a powerful reminder of the inherent risks in leveraged crypto trading. While the potential for gains is significant, the possibility of rapid losses is equally real. Traders must prioritize risk management, employ prudent strategies, and continuously educate themselves to navigate the unpredictable currents of the cryptocurrency futures market effectively. Staying informed and prepared is your best defense against such dramatic market shifts. Frequently Asked Questions (FAQs) Q1: What is the primary cause of crypto futures liquidation? A1: The primary cause is typically extreme market volatility combined with high leverage, where prices move sharply against a trader’s position, causing their margin to fall below the required threshold. Q2: How can traders protect themselves from liquidation? A2: Traders can protect themselves by using lower leverage, setting stop-loss orders, maintaining sufficient margin, staying informed about market news, and diversifying their portfolios. Q3: Does crypto futures liquidation only affect individual traders? A3: While individual traders are directly impacted by losing their capital, large-scale liquidations can also trigger broader market instability, increased selling pressure, and a climate of fear. Q4: Are liquidations common in the cryptocurrency market? A4: Yes, due to the inherent volatility of cryptocurrencies and the common use of leverage, liquidation events, sometimes significant in scale, are a relatively common occurrence in the crypto futures market. Q5: What role do exchanges play in liquidations? A5: Exchanges automatically execute liquidations to protect both the trader from deeper debt and the exchange itself from counterparty risk when a trader’s margin falls below a certain level. If you found this article insightful, consider sharing it with fellow crypto enthusiasts on social media. Your shares help us continue providing valuable market analysis and insights to the community! To learn more about the latest crypto market trends, explore our article on key developments shaping Bitcoin price action. This post Massive Crypto Futures Liquidation: $113 Million Wiped Out in a Single Hour first appeared on BitcoinWorld.

Author: Coinstats

2025/10/30

Central bank Gold buying slows sharply despite higher prices – TDS

Central bank Gold buying slows sharply despite higher prices – TDS

The post Central bank Gold buying slows sharply despite higher prices – TDS appeared on BitcoinEthereumNews.com. Central bank buying activity has shrunk significantly. After all, the rise in Gold prices — not volumes —has done the heavy lifting in raising the percentage of reserves held in Gold, TDS’ Senior Commodity Strategist Daniel Ghali notes. Dedollarization narrative fades as BRICs+ halt Gold purchases “The dedollarization theme remains pervasive in analyst commentary and market views, but likely has not been a relevant driver for several months. Decomposing central bank purchases suggest that buying activity from BRICs+ nations has ground to a halt, leaving Eastern European nations as the primary drivers of inflows relating to central banks, which is more likely unrelated to dedollarization.” “CTA selling activity related to vol-control has likely peaked, but this will not lead to large-scale purchases ahead at any price. The debasement trade has fueled epic fund flows via macro funds and retail participants alike, but we continue to see a poor risk/reward on dollar debasement into year-end, given a potential inflection point in the narrative ahead driven by the upcoming Supreme Court hearings.” “Positioning data for levered participants remains captive to the government shutdowns, obscuring the read on whether sufficient outflows have already occurred. However, the positioning data currently available from our proprietary models and ETFs only point to limited liquidations thus far. Zoom out: everyone wants to buy the dip, but this may not yet be a dip worth buying.” Source: https://www.fxstreet.com/news/central-bank-gold-buying-slows-sharply-despite-higher-prices-tds-202510291449

Author: BitcoinEthereumNews

2025/10/30

$300M Vanishes After Powell’s Presser

$300M Vanishes After Powell’s Presser

The post $300M Vanishes After Powell’s Presser appeared on BitcoinEthereumNews.com. Massive Crypto Futures Liquidations: $300M Vanishes After Powell’s Presser Skip to content Home Crypto News Massive Crypto Futures Liquidations: $300M Vanishes After Powell’s Presser Source: https://bitcoinworld.co.in/crypto-futures-liquidations-powell/

Author: BitcoinEthereumNews

2025/10/30

$300 million liquidated from crypto market in one hour as Fed Chair delivers FOMC speech

$300 million liquidated from crypto market in one hour as Fed Chair delivers FOMC speech

The post $300 million liquidated from crypto market in one hour as Fed Chair delivers FOMC speech appeared on BitcoinEthereumNews.com. Key Takeaways Over $300 million was liquidated in the crypto markets due to volatility triggered by the Federal Reserve Chair’s FOMC speech. Lower interest rates may push investment into cryptocurrencies and other alternative assets. The crypto market faced $300 million in liquidations in the past hour as Federal Reserve Chair Jerome Powell delivered remarks during the Federal Open Market Committee speech, triggering immediate volatility across digital assets. The liquidations reflect heightened market sensitivity to central bank communications, as traders respond rapidly to policy signals from the Federal Reserve’s policy-making body. The Fed on Wednesday decided to reduce the federal funds rate by 25 basis points to between 4% and 3.75%. The rate cut, decided by a 10-2 vote, aims to address slow job gains and a slight increase in the unemployment rate. Lower interest rates could drive investments towards cryptocurrencies and other alternative assets. However, the extended US government shutdown could still complicate the crypto outlook by causing regulatory delays and increasing investor uncertainty. Source: https://cryptobriefing.com/300-million-liquidated-crypto-fomc-powell-speech/

Author: BitcoinEthereumNews

2025/10/30

Crypto Sale Moves From ETHZilla, Sequans Spark DAT Unwind Fears

Crypto Sale Moves From ETHZilla, Sequans Spark DAT Unwind Fears

The post Crypto Sale Moves From ETHZilla, Sequans Spark DAT Unwind Fears appeared on BitcoinEthereumNews.com. The first signs of a potential unwind in digital asset treasuries emerged this week as two firms appeared to sell part of their holdings. Two digital asset treasury (DAT) companies moved to cash out part of their crypto holdings this week, after months of non-stop accumulation across the emerging DAT sector. The moves triggered speculation that corporate crypto treasuries may be starting an early-stage, but long-predicted unwind. Ethereum treasury company ETHZilla said in a Oct. 27 press release that it had sold roughly $40 million of ETH and used proceeds to repurchase about 600,000 of its shares for roughly $12 million under a previously authorized $250 million buyback program. The firm currently holds over 102,000 ETH in its reserve, placing it in the top-five publicly traded ETH holders, per data from CoinGecko. Also this week, on-chain data shows that Sequans, a Bitcoin treasury firm holding 3,205 BTC, moved nearly 1,000 BTC to an address that appears to be a hot wallet on Coinbase Prime. ETHZilla said in the release that the firm “intends to continue to sell ETH to repurchase its shares until the discount to NAV is normalized,” while retaining about $400 million of ETH for future initiatives. According to ETHZilla’s website, the company’s mNAV — a ratio of the firm’s market capitalization to the dollar value of its crypto holdings — was standing at 0.62 as of Oct. 23, which means its stock was trading at a substantial discount to the underlying value of its holdings. Following the sale, ETHZilla’s shares on Nasdaq jumped 5.42%, per data from Google Finance. Sequans, on the other hand, has yet to confirm its Bitcoin sale. Blockchain analyst Emmett Gallic reported in an X post on Oct. 28 that Sequans moved 970 BTC to an address on Coinbase Prime that he says…

Author: BitcoinEthereumNews

2025/10/30

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