More than 205,000 users lost their crypto futures trading positions in one day as global markets remained in the red.
According to analysis platform Bybt, crypto futures totaling $1.2 billion have been liquidated in the past 24 hours as global markets continue to slide across the board.
At the time of writing, the vast majority of top cryptocurrencies are still in the red. Bitcoin, for example, has been down 11% since Saturday and is trading at around $42,660.
The price of Ethereum, the second largest digital asset by market cap, has also lost 13% since the weekend, falling to around $ 3,044 at press time.
Long trading positions made up the lion’s share of today’s liquidations. According to Bybt 83.53% of liquidated positions were long in the past 24 hours, which is nearly half a billion dollars. On the other hand, shorts worth $96.89 million were liquidated over the same period.
In total, just over 205,000 traders lost their positions last day, while the largest single liquidation, worth $10 million, took place on the BitMEX crypto exchange.
It’s not just the crypto market that has slumped in the past few days; Other markets such as the S&P 500, the Dow Jones Industrial Average, and global equity markets also continue to decline.
Many analysts attribute the global market slump to recent concerns about Evergrande, China’s heavily indebted real estate giant.
A potential collapse of the troubled company could even have an impact on the global economy as a whole, according to CNBC.
Chang, chief investment officer at Rockefeller Global Family Office, told CNBC;
“Evergrande is a systemically important company, real estate is so important to the Chinese economy and the financial well-being of so many Chinese families. Homeownership is over 90%,” said Chang. “So many people buy apartments as an investment, so if this thing is not contained, it could become a real black swan.
“If China were to have a serious economic issue because of China Evergrande, the rest of the global economy would have contagion from it.”