Tue, June 18, 2024 at 22:17

• 

  Joy

  • Hey Annie!

  • Did you hear about the massive liquidations in the cryptocurrency derivatives market yesterday?😲

  • 
• Annie

  • Oh, really?

  • What happened?😮

  
• 

  Joy

  • Yeah, it was pretty wild!

  • The market saw contracts worth almost $429 million get liquidated in just 24 hours.

  • That's a lot of money!💸

• Annie

  • Wow, that's huge!

  • Was it mostly Bitcoin that got hit?

  
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• 

  Joy

  • Surprisingly, no!

  • This time, Ethereum led the liquidations with around $92 million.

  • Bitcoin moved sideways, so it wasn't as affected.🤔

• Annie

  • Interesting!

  • What about other cryptocurrencies?

  
• 

  Joy

  • Well, Dogecoin and Shiba Inu were next in line with $60 million and $23 million in liquidations, respectively.

  • They both dropped around 11%!😬

• Annie

  • That's quite a drop.

  • Why did these altcoins get hit so hard?

  
• 

  Joy

  • It's mainly because these memecoins are more speculative, so they see more volatile activity.

  • Plus, the overall market was on a downward trajectory.📉

• Annie

  • I see.

  • So, what exactly is a liquidation in this context?

  
• 

  Joy

  • Good question!

  • A liquidation happens when the platform forcibly closes a contract due to significant losses.

  • It's like when you can't pay back a loan, so the bank takes your house.🏠

• Annie

  • Got it!

  • And this event is called a squeeze, right?

  
• 

  Joy

  • Exactly!

  • When liquidations cascade together, causing even more volatility, it's called a squeeze.

  • This one was a long squeeze because most of the liquidations were from traders betting on a market rise.📊

• Annie

  • Wow, that's intense.

  • How often do these squeezes happen?

  
• 

  Joy

  • Squeezes aren't uncommon due to the high volatility in crypto, but an altcoin-dominated squeeze of this scale is pretty rare.🌪️

• Annie

  • So, what's the current price of Ethereum after this plunge?

  
• 

  Joy

  • Ethereum has dropped to around $3,400.

  • It's a significant dip considering its recent performance.📉

• Annie

  • That's quite a drop.

  • Do you think this news is good or bad for the market?

  
• 

  Joy

  • Honestly, it's pretty bad news.

  • 

  • Such massive liquidations can shake investor confidence and lead to more volatility.

  • It's not a great sign for the market stability.😕

• Annie

  • Thanks for the insight, Joy.

  • I'll keep that in mind for my investments.🙏

  
• 

  Joy

  • No problem, Annie!

  • Always here to help.😊

  • To sum up, this article is considered a 😱Bearish for investors!!