BitcoinWorld Crypto Perpetual Futures Liquidation: Unveiling the Shocking Losses in 24 Hours The cryptocurrency market is a dynamic arena, often characterized by rapid price movements and significant volatility. For traders engaging in derivatives, understanding the concept of crypto perpetual futures liquidation is absolutely crucial. This process can lead to substantial, sudden losses for those who trade with leverage. Grasping the mechanics behind these liquidations is vital for anyone participating in the high-stakes futures market. What Exactly is Crypto Perpetual Futures Liquidation? Crypto perpetual futures liquidation occurs when a trader’s leveraged position is forcibly closed by an exchange. This action happens because the trader’s margin balance has fallen below a predefined maintenance margin requirement. Exchanges initiate these liquidations automatically to prevent a trader’s account balance from going negative and to ensure that potential losses are covered. Perpetual futures contracts are a unique type of derivative. They allow traders to speculate on a cryptocurrency’s future price without needing to own the underlying asset directly. Unlike traditional futures contracts, perpetual futures have no expiry date. This feature, combined with the use of leverage, makes them incredibly popular but also inherently risky. When market prices move sharply against a trader’s position, especially with high leverage, liquidation becomes a very real and often sudden threat. The Shocking Breakdown: 24-Hour Crypto Perpetual Futures Liquidation The past 24 hours have witnessed a significant volume of crypto perpetual futures liquidation across several major cryptocurrencies. These figures clearly highlight the market’s recent volatility and the profound impact on leveraged positions. Many traders, particularly those holding long positions, faced unexpected and immediate closures of their trades. Bitcoin (BTC): A staggering $64.81 million in BTC perpetual futures was liquidated. A vast majority, specifically 79.87%, were long positions. This indicates a sharp downturn in Bitcoin’s price, catching bullish traders by surprise. Ethereum (ETH): Ethereum saw the largest liquidation volume, totaling an astonishing $173.52 million. Of this substantial amount, 68.68% were long positions. ETH’s recent price action clearly triggered significant losses for those betting on its upward movement. Solana (SOL): Solana also experienced considerable liquidations, amounting to $20.94 million. An overwhelming 85.02% of these were long positions, showcasing a strong negative price swing for SOL in a short period. These compelling figures underscore the inherent and magnified risks of trading perpetual futures. Even experienced traders can face liquidation if they do not manage their risk effectively. The market’s often unpredictable nature means that sudden price drops can wipe out highly leveraged positions with alarming speed. Why Do These Liquidations Happen So Quickly? Liquidations are a direct and unavoidable consequence of combining leverage with market volatility. When traders utilize leverage, they essentially borrow funds to amplify their potential trading power. While this can dramatically magnify profits during favorable market movements, it equally magnifies losses when the market turns unfavorable. A relatively small price movement against a highly leveraged position can quickly deplete the initial margin a trader has put up. Cryptocurrency exchanges maintain a “maintenance margin” level for all leveraged positions. If your position’s value drops to this critical point, the exchange will typically issue a margin call, requesting you to add more funds. If you fail to add additional capital, or if the price continues to move unfavorably, the exchange automatically liquidates your position. This automated process is designed to protect both the exchange and other traders from significant financial losses. Understanding this fundamental mechanism is absolutely vital to avoid sudden crypto perpetual futures liquidation . Smart Strategies for Navigating Crypto Futures How can traders better manage the substantial risks associated with crypto perpetual futures liquidation ? Effective risk management is not just important; it is paramount. Traders should always meticulously consider the amount of leverage they are using. Higher leverage invariably means a higher and more immediate risk of liquidation. It is often advisable, especially for beginners, to start with significantly lower leverage. Implementing strict stop-loss orders is another crucial and proactive strategy. A stop-loss order automatically closes your position when the price reaches a predetermined, unfavorable level. This action effectively limits potential losses before a full liquidation can occur. Diversifying your portfolio and avoiding the temptation to put all your capital into one highly leveraged trade can also significantly mitigate overall risk. Furthermore, continuously educating yourself on market analysis and understanding broader macroeconomic factors that influence crypto prices can provide a distinct edge in these volatile markets. The recent wave of crypto perpetual futures liquidation serves as a powerful and undeniable reminder of the inherent volatility and magnified risks within the digital asset market. While perpetual futures undoubtedly offer exciting opportunities for amplified gains, they simultaneously demand a rigorous and disciplined approach to risk management. Traders must prioritize a deep understanding of leverage, diligently setting appropriate stop-losses, and continuously monitoring dynamic market conditions to protect their hard-earned capital. Staying informed, exercising extreme caution, and adhering to a well-defined trading plan are unequivocally key to navigating these turbulent waters successfully. Frequently Asked Questions About Crypto Futures Liquidation Here are some common questions about this critical market event: What causes crypto perpetual futures liquidation? Liquidations primarily occur when a trader’s leveraged position loses enough value that their margin balance falls below the exchange’s maintenance margin requirement, often due to significant price movements against their trade. How can I avoid liquidation in futures trading? To minimize liquidation risk, use lower leverage, set stop-loss orders, maintain sufficient margin, and continuously monitor market conditions. What is the difference between perpetual futures and traditional futures? The main difference is that perpetual futures have no expiry date, allowing traders to hold positions indefinitely as long as they meet margin requirements, unlike traditional futures which have a set settlement date. Why were long positions liquidated more in the last 24 hours? The higher liquidation of long positions suggests a dominant downward price movement across BTC, ETH, and SOL during that period, causing traders betting on price increases to lose their margin. Is crypto futures trading suitable for beginners? Crypto futures trading, especially with leverage, carries high risk and is generally not recommended for beginners without a thorough understanding of market dynamics, risk management, and the specific mechanics of derivatives. If you found this breakdown of crypto perpetual futures liquidation insightful, consider sharing it with your network! Help others understand the critical aspects of leveraged trading by sharing this article on social media. Your share can help spread vital knowledge in the crypto community. To learn more about the latest crypto market trends, explore our article on key developments shaping Bitcoin price action. This post Crypto Perpetual Futures Liquidation: Unveiling the Shocking Losses in 24 Hours first appeared on BitcoinWorld and is written by Editorial Team
On August 19, COINOTAG News reported that Illinois Governor JB Pritzker has enacted the Digital Asset and Consumer Protection Act (SB 1797) alongside the Digital Asset ATM Act (SB 2319).
HTX, a leading global crypto exchange, is excited to announce the launch of its new “Weekly Check-in & Win” campaign, designed to add more interactive benefits for its community. Starting August 8, you can join the Lucky Draw for a chance to win exciting prizes, including 1,888 USDT and the latest Apple Watch Series 10. Simply complete a quick community check-in task to qualify! Simple Task, Weekly Chances to Win Participating is easy. To get one entry into the lucky draw, all you have to do is complete a weekly community “check-in” by commenting on a designated post. The task resets every week, giving everyone multiple opportunities to win. Generous Prize Pool of Digital Assets and Physical Rewards The prize pool is packed with both digital assets and physical goods. Prizes include: ● First Prize: 1,888 USDT, distributed directly to the winner’s HTX account. ● Second Prize: Apple Watch Series 10 (Glossy Black). ● Third Prize: 60,000 $WIN . ● Fourth to Seventh Prizes: 6 $TRX , 6 $STEEM , 6 $JST , and 6 $SUN , respectively. ● Eighth and Ninth Prizes: 60,000 $BTT , 60,000 $NFT , respectively. Easy to Join, More Fun to Interact This event is all about high rewards for low effort. It’s a fun and easy way for both new and existing users to engage with our community and win great prizes. Our goal is to foster a relaxed and active environment, encouraging everyone to participate in the HTX ecosystem. Don’t miss out— Prizes are ready and waiting. Click “ Register Now ” on the event page to participate and start winning right away. N ote: Prizes, event rules, and redemption details are all subject to the official HTX announcement. To learn more about HTX, please visit https://www.htx.com/ or HTX Square , and follow HTX on X , Telegram , and Discord . The post HTX Kicks Off “Weekly Check-in & Win” Event with Exciting Prizes, Including the New Apple Watch Series 10 first appeared on HTX Square .
Last week, digital asset investment vehicles recorded $3.75 billion in inflows, their fourth-highest figure historically, in what appears to be a recovery from the subdued momentum of previous weeks. Interestingly, the surge was almost entirely tied to iShares and one particular product under its umbrella. With market prices pushing higher, total assets under management (AuM) reached a historic peak of $244 billion on August 13. Amidst this momentum, Ethereum continued to steal the show. ETH Inflows Smash Records In its latest edition of ‘Digital Asset Fund Flows Weekly Report,’ CoinShares revealed that Ethereum attracted a record $2.87 billion in inflows last week, which accounted for 77% of total market inflows. This pushed its year-to-date figure to a whopping $11 billion. Ethereum’s inflows also dominate relative to assets under management, as it made up 29% compared to Bitcoin’s 11.6%. Inflows into Bitcoin reached $552 million, comparatively smaller than Ethereum’s haul. Short-bitcoin investment vehicles nevertheless gained traction, securing an additional $4 million. Investors continued spreading capital across other assets. For instance, Solana brought in $176.5 million, XRP $125.9 million, followed by Sui at $11.3 million, Chainlink at $1.2 million, and Cardano with $0.8 million. Multi-asset products managed a minor $0.4 million inflow. However, not all assets fared equally. Litecoin experienced outflows of $0.4 million, while Ton registered the steepest reversal, with $1 million withdrawn from funds during the same period. Of the $3.73 billion inflows, the US captured nearly all – about 99%. Other countries contributed smaller portions. Canada followed with $33.7 million, alongside Hong Kong’s $20.9 million and Australia’s $12.1 million. Switzerland also contributed $4.2 million. On the other hand, Sweden reported $49.9 million in outflows, while Brazil recorded $10.6 million exiting investment products over the past week. The subsequent week, however, painted a different picture as markets slid sharply. Crypto Markets Face Fresh Sell-Off Digital asset markets faced turbulence on 18th August as Bitcoin fell from $118K to $115K and Ethereum also dropped from $4,500 to $4,300, triggering over $400 million in long liquidations. The sell-off extended last week’s decline, when Bitcoin retreated 5% from all-time highs amid $1 billion in DeFi liquidations and profit-taking. Funding rates had already hinted at stress, with BTC perpetuals softening since Friday. Deribit’s funding rate, above 20% for most of last week, turned negative by Saturday and echoed a pattern seen before the August 1 drop to $112K. With Jackson Hole looming, QCP Capital stated that traders view the move as pre-event de-risking. Options markets now tilt bearish, and puts are favored across maturities. Still, corporate buyers remain active. Tokyo-listed Metaplanet, for one, added 775 BTC over the weekend. The post Bitcoin Sees $552M Inflows, But Ethereum’s Haul Is 5 Times Larger appeared first on CryptoPotato .
Welcome to Latam Insights Encore, a deep dive into Latin America’s most relevant economic and crypto news from the past week. In this edition, we examine how XRP has evolved from being just a remittance tool to becoming one of the preferred assets in Latam’s portfolios, and how its popularity might continue to rise. Latam
Dogecoin is currently trading within a broadening wedge pattern, indicating a potential rally towards $1.4. Key support at $0.20 and shifting momentum suggest significant price movements ahead. Dogecoin trades inside
TeraWulf’s chief strategy officer, Kerri Langlais, says Google has become its largest shareholder, providing “powerful validation” from a leading tech giant.
BitcoinWorld U.S. Spot Bitcoin ETF Faces Significant Outflows: An Urgent Market Update The world of cryptocurrency exchange-traded funds (ETFs) recently experienced a notable shift. U.S. spot Bitcoin ETF products, alongside their Ethereum counterparts, recorded significant net outflows on August 18. This development marked the second consecutive day of such movements, drawing attention from investors and market observers alike. Understanding Recent U.S. Spot Bitcoin ETF Movements On August 18, U.S. spot Bitcoin ETF products collectively registered a net outflow of $121.73 million. This trend signals a period of investor caution, following a similar pattern from the previous trading day. Analyzing these figures helps us understand the immediate sentiment within the crypto market. Several key players in the U.S. spot Bitcoin ETF space were impacted: BlackRock’s IBIT led the outflows, experiencing a significant $68.64 million departure. ARK Invest’s ARKB also saw substantial outflows, totaling $65.75 million. Interestingly, Bitwise’s BITB bucked the trend, recording a modest $12.66 million inflow, indicating some diversified investor interest. Ethereum ETFs Also Witness Withdrawals It wasn’t just Bitcoin that felt the pressure; U.S. spot Ethereum ETFs also faced considerable withdrawals. These products collectively saw a net outflow of $196.34 million, mirroring the consecutive outflow days observed in their Bitcoin counterparts. This indicates a broader trend across major digital asset ETFs. The Ethereum ETF landscape saw outflows from multiple funds: BlackRock’s ETHA was hit hardest, with $86.87 million in outflows. Fidelity’s FETH followed closely, registering $78.40 million in net withdrawals. Other notable outflows included Grayscale’s ETHE ($18.70 million), Franklin Templeton’s EZET ($6.63 million), VanEck’s ETHV ($4.80 million), and Bitwise’s ETHW ($0.94 million). The remaining Ethereum ETFs reported no change in their holdings for the day. This suggests a concentrated outflow from specific major players in the market. What Drives These Significant ETF Outflows? Understanding why these outflows occur is crucial for investors. Several factors can contribute to a decrease in holdings for U.S. spot Bitcoin ETF and Ethereum ETF products. These movements are often a reflection of the broader market environment and investor behavior. Common reasons for such trends include: Market Sentiment: Broader cryptocurrency market trends often influence ETF flows. If there’s a general downturn or uncertainty, investors might pull back their capital. Profit-Taking: After periods of significant gains, some investors may choose to realize profits, leading to redemptions from their ETF holdings. Macroeconomic Factors: Global economic indicators, such as interest rate changes or inflation concerns, can push investors towards perceived safer assets, away from more volatile investments like crypto ETFs. Regulatory Landscape: Shifting regulatory discussions or uncertainties surrounding digital assets can also impact investor confidence in these products. These outflows highlight the dynamic nature of the digital asset market, where investor behavior can rapidly respond to various internal and external cues. Navigating the Landscape of U.S. Spot Bitcoin ETFs For those invested in or considering U.S. spot Bitcoin ETF products, recent outflows serve as a reminder of market volatility. It is essential to monitor these trends, but also to consider the broader context. While two consecutive days of outflows are noteworthy, they do not necessarily indicate a long-term bearish trend. ETF flows are a snapshot of daily activity, influenced by a multitude of factors. Investors should: Diversify Portfolios: Avoid putting all investments into a single asset class, even within crypto. Spreading investments can mitigate risks. Stay Informed: Keep abreast of market news, regulatory updates, and economic indicators. Knowledge empowers better decision-making. Consider Long-Term Goals: Short-term fluctuations are common in the crypto space. Focus on your long-term investment strategy rather than reacting to every daily change. The emergence of a U.S. spot Bitcoin ETF has provided new avenues for traditional investors to gain exposure to Bitcoin. However, with this accessibility comes the need for informed and strategic decision-making. The recent net outflows from U.S. spot Bitcoin ETF and Ethereum ETF products on August 18 highlight the ever-present volatility and responsiveness of the digital asset market. While specific funds like BlackRock’s IBIT and ETHA saw significant withdrawals, it’s crucial to view these movements within the broader context of market dynamics and investor sentiment. Staying informed and maintaining a balanced perspective are key to navigating the evolving landscape of cryptocurrency investments. Frequently Asked Questions (FAQs) What is a U.S. spot Bitcoin ETF? A U.S. spot Bitcoin ETF is an exchange-traded fund that directly holds Bitcoin, allowing investors to gain exposure to Bitcoin’s price movements without actually owning the cryptocurrency itself. It trades on traditional stock exchanges. Why are ETF outflows significant? ETF outflows are significant because they indicate that more shares of the fund are being redeemed than created, meaning investors are pulling money out. This can reflect a negative sentiment towards the underlying assets or broader market conditions. Are these outflows common for crypto ETFs? Yes, daily inflows and outflows are common for all types of ETFs, including crypto ETFs. The crypto market is known for its volatility, so larger fluctuations in ETF flows can occur in response to market news or price movements. How can investors stay informed about ETF trends? Investors can stay informed by regularly checking financial news outlets, market data providers, and official reports from ETF issuers. Following reputable crypto analysts and financial journalists can also provide valuable insights. Did you find this analysis of U.S. spot Bitcoin ETF outflows insightful? Share this article with your network on social media to help others understand the latest market trends! To learn more about the latest crypto market trends , explore our article on key developments shaping Bitcoin price action . This post U.S. Spot Bitcoin ETF Faces Significant Outflows: An Urgent Market Update first appeared on BitcoinWorld and is written by Editorial Team
On August 19, COINOTAG News reported that Wang Feng, the founder of Blueport Interactive, has expressed his intention to accumulate more **Ethereum** over a three-day period, citing favorable market conditions.