Crypto traders lost about $ 1 billion over the past day

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Over the past 24 hours, traders trading leveraged cryptocurrencies have lost almost $ 1 billion. According to bybt.com, in 24 hours, exchanges have liquidated the positions of 52 thousand users. The loss of one of them amounted to more than $ 5 million, writes RBC Crypto.

The reason for the liquidations was fluctuations in the cryptocurrency market. Over the past 24 hours, bitcoin has fallen in price to $ 32.3 thousand, and then it has risen in price to $ 35 thousand. Now BTC costs $ 34.8 thousand. Similar dynamics were shown by most of the leading digital coins in terms of capitalization, follows from the data from coinmarketcap.com.

Leveraged users can lose capital due to the forced closure of a position if the asset price goes down. For example, if a trader has opened a short position, that is, he is playing a fall, then liquidation may occur when the rate rises.

This means that the exchange will forcibly close the client’s position and take the capital left by him as collateral. A similar outcome awaits a trader who has opened a long position and expects the asset price to rise – if it starts to fall, this can lead to the liquidation of the position and loss of the invested funds.

On January 11, the bitcoin rate collapsed by $ 10 thousand in 27 hours. Against this background, the market experienced a massive liquidation of traders’ positions. Users lost more than $ 2.5 billion, at least 26 thousand people suffered losses.

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