{"id":28248,"date":"2024-09-02T13:00:07","date_gmt":"2024-09-02T10:00:07","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=28248"},"modified":"2024-09-02T13:30:21","modified_gmt":"2024-09-02T10:30:21","slug":"crypto-liquidations-likely-underreported","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/crypto-liquidations-likely-underreported\/","title":{"rendered":"Crypto Liquidations Likely Underreported, Researcher Warns of Misleading Market Data"},"content":{"rendered":"

Senior analyst Vetle Lunde<\/strong> of K33 Research<\/strong> believes that major exchanges may understate the degree of Bitcoin market<\/strong> liquidations<\/strong> significantly. Lunde exposed in an August 29 paper that some bitcoin exchanges like Binance, Bybit, and OKX had changed their liquidation data reporting since 2021, therefore maybe underrepresenting real liquidation volumes in the market.<\/p>\n

Lunde<\/strong> pointed out that these interactions now capture one liquidation per second rather than monitoring all liquidations, thus distorts the picture of the real market risk levels. Underlining that this issue has persisted for the previous three years, Lunde said: “Liquidation data from exchanges are bogus and a vast underrepresentation of actual liquidation volumes in the market.”<\/p>\n

Analyzers and traders depend on liquidation data as they help them to grasp leverage ratios and market risk tolerance. Understanding the effect of unanticipated volatility and deciding if significant market occurrences, like Crypto Black Monday on August 5, when Bitcoin dropped rapidly below $50,000<\/strong>, completely eliminate leverage depend on accurate data.<\/p>\n

According to the report, exchanges may be keeping an informational advantage for their own trading requirements or suppressing data for public relations reasons. Lunde claimed some exchanges even own investment firms with trading based on knowledge not known by the rest of the market.<\/p>\n

While it may help some comprehend leverage flush-outs, tracking changes in open interest\u2014a indication of the value of crypto futures yet to expire\u2014may not fully represent the mechanics of the market during liquidation events.<\/p>\n

Coinglass, a crypto derivatives analytics platform, shows that, at the time of writing, 83% of 56,958 traders liquidated during the preceding 24 hours equivalent to $156.7 million<\/strong>. Lunde, on the other hand, notes that this data also originates from the same interactions probably underreporting liquidation totals.<\/p>\n

“For now, liquidation data are mostly erroneous entertainment and not actionable,<\/em>” Lunde<\/strong> remarked. Lunde advised traders handling the erratic crypto markets to handle revealed data cautiously.<\/p>\n

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don\u2019t forget to follow us on our <\/span><\/i>Telegram, <\/span><\/i><\/a>YouTube<\/span><\/i><\/a>, and <\/span><\/i>Twitter<\/span><\/i><\/a> channels for the latest <\/span><\/i>news<\/span><\/i><\/a> and updates.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

Senior analyst Vetle Lunde of K33 Research believes that major exchanges may understate the degree of Bitcoin market liquidations significantly. Lunde exposed in an August 29 paper that some bitcoin exchanges like Binance, Bybit, and OKX had changed their liquidation data reporting since 2021, therefore maybe underrepresenting real liquidation volumes in the market. Lunde pointed<\/p>\n","protected":false},"author":6,"featured_media":28250,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,657,1],"tags":[8349,8350,8351],"class_list":["post-28248","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-en","category-genel","tag-bitcoin-liquidations","tag-crypto-research","tag-vetle-lunde"],"yoast_head":"\nCrypto Liquidations Likely Underreported, Researcher Warns of Misleading Market Data - Coin Engineer<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/crypto-liquidations-likely-underreported\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Crypto Liquidations Likely Underreported, Researcher Warns of Misleading Market Data - Coin Engineer\" \/>\n<meta property=\"og:description\" content=\"Senior analyst Vetle Lunde of K33 Research believes that major exchanges may understate the degree of Bitcoin market liquidations significantly. 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