Emre Yumlu 
The sharp decline in the crypto market yesterday severely impacted traders using high leverage. A $200 million long Bitcoin position held by a user on Binance was completely liquidated, marking one of the largest individual liquidations in recent times.
Bitcoin Leverage Trades Lead to Massive Losses
Over the past 24 hours, more than $1.15 billion worth of positions were liquidated. This wave reversed the optimistic sentiment driven by Circle’s IPO plans and growing interest in U.S.-based DeFi projects. More than 247,000 traders were wiped out from the market.
Data shows that the majority of the liquidations were on long positions. As traders opened highly leveraged positions anticipating continued upward momentum, sudden price drops triggered margin shortfalls, and positions were automatically closed by the system.
Most Liquidations Happened on Binance and Bybit
The majority of the liquidated positions occurred on Binance and Bybit. These two platforms accounted for more than $834 million in total liquidations. The $200 million loss on Binance drew attention once again to poor risk management and excessive leverage usage.
Bitcoin and Ethereum Price Drops
Bitcoin’s price dropped more than 3%, falling to $104,700 during Asian trading hours, while Ethereum declined 8%, reaching $2,530. Major altcoins like Solana (SOL), Dogecoin (DOGE), and XRP also suffered similar losses.
Leverage Risks Resurface
While leveraged trading offers the potential for large profits, insufficient margin levels can lead to automatic liquidations, closing the entire position. This incident once again highlights how volatile and risky the crypto markets can be.
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