<\/p>\n
As prices dipped lower across the sector on Thursday, derivatives traders were among the hardest-hit with $90 million in long positions wiped out in just two hours.\u00a0<\/p>\n
According to data from Coinglass<\/a>, between 10:00 am and 12:00 pm ET, a sector-wide price plunge led by bitcoin (BTC<\/a>) dropping from $28,393 to $27,920 kicked off a series of liquidations across centralized exchanges.\u00a0<\/p>\n The two-hour washout is just a fraction of the $200 million lost over the last 24 hours \u2014 the highest total since June 9, when $348 million in longs were liquidated.<\/p>\n Leading the liquidations for the day are OKX, which liquidated $69.2 million in longs, followed by Binance, which wiped $47.3 million.\u00a0<\/p>\n A lack of volatility in crypto large-cap assets such as bitcoin and ether (ETH<\/a>) means that the liquidation stats could have been even worse. Bitcoin has been trading in a $1,500 range between $30,000 and $28,500 for the better part of a month, and a recent Kaiko report found that both BTC and ETH have recently been less volatile<\/a> than oil. Traditionally, derivatives traders prefer assets with high volatility.\u00a0<\/p>\n On-chain leverage positions may be the next area of focus if prices continue to drop. Because of DeFi protocols\u2019 liquidation procedures, unwinding on-chain derivatives and leverage positions can lead to liquidation cascades and protocols programmatically sell user collateral.\u00a0<\/p>\n According to DeFiLlama<\/a>, $162.3 million is at risk of liquidation within a 20% price drop on the Ethereum chain alone, and $1.6 billion at risk total.\u00a0<\/p>\n Ether is down 4.7% on the day to $1,736.<\/p>\n Get the day\u2019s top crypto news and insights delivered to your email every evening.\u00a0Subscribe to Blockworks\u2019 free newsletter<\/a>\u00a0now.<\/strong><\/p>\n Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can\u2019t-miss tweets and more from\u00a0Blockworks Research\u2019s Daily Debrief<\/a>.<\/strong><\/p>\n Can\u2019t wait? Get our news the fastest way possible.\u00a0Join us on Telegram<\/a>\u00a0and follow us on\u00a0Google News<\/a>.<\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" As prices dipped lower across the sector on Thursday, derivatives traders were among the hardest-hit with $90 million in long positions wiped out in just two hours.\u00a0 According to data from Coinglass, between 10:00 am and 12:00 pm ET, a sector-wide price plunge led by bitcoin (BTC) dropping from $28,393 to $27,920 kicked off a […]<\/p>\n","protected":false},"author":2,"featured_media":138742,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-138741","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/138741","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=138741"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/138741\/revisions"}],"predecessor-version":[{"id":147978,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/138741\/revisions\/147978"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/138742"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=138741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=138741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=138741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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