Official episode / Crypto News Today
Daily Crypto Deep Dive: Bitcoin Looks Calm — Why Traders Are Getting Wiped Out
About this episode
Bitcoin barely moved over 24 hours—but beneath the calm-looking price chart, almost $286 million worth of leveraged cryptocurrency positions were liquidated.
In this Daily Crypto Deep Dive, we explain how approximately 87,000 traders were wiped out while Bitcoin finished close to where it started. The market surged, liquidated traders betting against Bitcoin, reversed lower and then liquidated traders betting on it rising.
We break down exactly how cryptocurrency leverage works, why a movement of only 1% or 2% can destroy highly leveraged positions, and how 20-times, 50-times and 100-times leverage dramatically reduces a trader’s room for error.
What a cryptocurrency liquidation actually means
How long and short traders can both lose on the same day
Why Bitcoin’s closing price can hide enormous intraday volatility
How perpetual futures and funding rates work
What causes long and short liquidation cascades