The post Shocking $270M+ Wiped Out In 24 Hours appeared on BitcoinEthereumNews.com.

The cryptocurrency market is a dynamic arena, often characterized by rapid price swings and intense trading activity. For many traders, the allure of amplified gains draws them to derivatives like perpetual futures. However, this high-stakes environment also comes with significant risks, none more dramatic than crypto liquidation. Over the past 24 hours, the market witnessed a staggering amount of capital wiped out, highlighting the inherent volatility and the critical importance of risk management in perpetual futures trading. Let’s dive deep into the recent breakdown and understand what these massive liquidations mean for the broader crypto landscape. What Exactly Are Perpetual Futures in Crypto Trading? Before we dissect the recent numbers, it’s crucial to grasp the concept of perpetual futures. Unlike traditional futures contracts that have a fixed expiration date, perpetual futures in crypto never expire. They are designed to mimic the spot market price of an asset while allowing traders to use leverage, meaning they can control a large position with a relatively small amount of capital. This innovative instrument has become incredibly popular due to its flexibility and the potential for magnified profits. No Expiry Date: Traders can hold positions indefinitely, as long as they meet margin requirements. Leverage: Allows traders to open positions much larger than their initial capital, amplifying both potential gains and losses. Funding Rates: A mechanism unique to perpetual futures that ensures the contract price stays tethered to the spot price. Traders pay or receive small fees based on the difference between the perpetual contract price and the spot price. Understanding Crypto Liquidation: The Sudden Wipeout So, what happens when a trader’s leveraged position goes awry? That’s where crypto liquidation comes into play. In simple terms, liquidation occurs when a trader’s margin balance falls below the maintenance margin requirement. This typically happens when the market…

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Filed under: News - @ July 19, 2025 7:27 am