Data shows a large number of long liquidations have occurred in the cryptocurrency market as Bitcoin and other assets have plunged.<\/p>\n
According to data from\u00a0CoinGlass<\/a>, chaos has occurred on the derivatives market following the volatility Bitcoin and the company have gone through during the last 24 hours.<\/p>\n Below is a table that shows how the liquidations<\/a> have looked for the cryptocurrency sector within this window.<\/p>\n As is visible, almost $712 million in cryptocurrency contracts have seen forceful closure from their platform in the past day. About $477 million of these came during the last twelve hours alone.<\/p>\n Bitcoin and the altcoins, especially, have seen a decline in this period, so it\u2019s not surprising to see that the liquidations have overwhelmingly affected the long investors. More specifically, the holders betting on a bullish outcome have been involved in more than 90% of the flush.<\/p>\n A mass liquidation event like this latest one is popularly known as a squeeze, and given the sharp imbalance toward the bulls, this particular event would be called a long squeeze<\/a>. During a squeeze, a large amount of liquidations get triggered at once and feed back into the move that caused them. This unleashes a cascade of further liquidations, making such events quite volatile.<\/p>\n As for which of the individual tokens contributed the most to the long squeeze, the heatmap below shows it.<\/p>\n Bitcoin and Ethereum, the top two cryptocurrencies in terms of market cap, have also come out on top in this list, with the former observing liquidations of $221 million and the latter that of $116 million.<\/p>\n The third-ranked coin, however, hasn\u2019t been XRP, but rather Solana, which is a couple of spots lower in terms of market cap. SOL\u2019s $32 million in liquidations may be down to the fact that it has seen a larger decline than XRP.<\/p>\n While Bitcoin has seen a push down during the past day, its downfall actually started much earlier, with the high around $112,000 from May 22nd acting as the top so far. According to a report<\/a> from the on-chain analytics firm Santiment, this peak coincided with a spike in whale activity.<\/p>\n