Rinse & Repeat, and Never Learn: Another USD 1B Liquidated In One Hour

Overleveraged and overly optimistic crypto traders once again lost billions amid a selloff in the crypto market.

Currently (10:03 UTC) Bitcoin's price is USD 55,961, down 4% in just one hour.

Almost 98% of the liquidated positions are long positions, while bitcoin (BTC) accounts for around 90% of them.

The top 10 cryptocurrency assets are down 5%-11% in a day. Bitcoin reached a new all-time high of US$ 61,712 on Thursday March 13 (per Coingecko.com). The number of long liquidations has increased in the last month or so. A Bitcoin trader may feel unable to take significant positions without margin trading, but some can’t afford our leveraged positions off a losing trade.Read More: - This Is The Biggest Risk To The Cryptomarket According to Pantera Capital's CIO - What Are Leveraged Tokens And Should You Trade Them?But eventually, markets will level off and traders may not be able to liquidate positions.

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Long liquidations have become more numerous over the past month or so. While trading on margin can boost a trader's profits, it can also result in increased losses and liquidations, which is why experienced traders usually advise newcomers to stay away from leveraged trading.

- Several cryptoassets from the top ten list have fallen by as much as 5%-11% in a single day. The bitcoin price has recently reached its new all-time high, USD 61,712 (according to Coingecko.com) on March 13. During the past month or so long liquidations have become increasingly common. How Safe Is It? Hence, the growing frequency of big liquidations.

Almost USD 1bn in cryptoasset positions was liquidated in one hour today, bringing the total to around USD 2.3 billion in the past 24 hours (194,539 positions). Bitcoin (BTC) accounts for 90% of the liquidated positions. However, while margin trading enables traders to amplify their returns, it can also lead to increased losses and liquidations, which is why experienced traders tend to advise newcomers to stay away from leveraged trading.

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Learn more:

- This Is The Biggest Risk To Crypto Market According to Pantera Capital CIO

- What Are Leveraged Tokens And Should You Trade Them?

- Several cryptoassets from the top ten list have fallen by as much as 5%-11% in a single day. The bitcoin price has recently reached its new all-time high, USD 61,712 (according to Coingecko.com) on March 13. During the past month or so long liquidations have become increasingly common. How Safe is it?

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