Liquidation

Liquidation occurs when a trader’s collateral is no longer sufficient to cover their leveraged position’s losses, triggering an automated forced closure by the exchange's liquidation engine. It is a critical risk-management mechanism that ensures the solvency of lending protocols and derivative platforms. In 2026, the focus has moved toward MEV-resistant liquidation models that protect users from predatory "cascades." This tag provides essential information on maintenance margins, health factors, and how to avoid liquidation in high-volatility environments.

14374 Articles
Created: 2026/02/02 18:52
Updated: 2026/02/02 18:52
A Staggering $134 Million Plunge Rocks The Market

A Staggering $134 Million Plunge Rocks The Market

The post A Staggering $134 Million Plunge Rocks The Market appeared on BitcoinEthereumNews.com. Ethereum Liquidations: A Staggering $134 Million Plunge Rocks The Market Skip to content Home Crypto News Ethereum Liquidations: A Staggering $134 Million Plunge Rocks the Market Source: https://bitcoinworld.co.in/ethereum-liquidations-plunge-market/

Author: BitcoinEthereumNews
Hex Trust CEO Sees Both Promise and Peril in Bitcoin Treasury Firms

Hex Trust CEO Sees Both Promise and Peril in Bitcoin Treasury Firms

The post Hex Trust CEO Sees Both Promise and Peril in Bitcoin Treasury Firms appeared on BitcoinEthereumNews.com. Good Morning, Asia. Here’s what’s making news in the markets: Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk’s Crypto Daybook Americas. Digital Asset Treasury (DATs) companies – firms that put bitcoin on the balance sheet – were the talk of the town during BTC Asia in Hong Kong. But corporate adoption of Bitcoin can be a double-edged sword, says Alessio Quaglini, CEO and Co-Founder of crypto custodian Hex Trust. While treasury holdings put crypto on the balance sheets of public companies, he warns that leveraged strategies could turn adoption into a source of instability. “It’s great for the adoption. It’s great because you have basically indirect bitcoin access to billions of people investing in local stock exchanges and Nasdaq,” Quaglini told CoinDesk during a recent interview on the sidelines of BTC Asia in Hong Kong. But he drew a sharp line between healthy diversification and financial engineering. “If this listing company exists for the sole purpose of holding crypto, well then, it’s a hedge fund that is publicly traded. It’s a financial engineering kind of exercise,” he continued. Quaglini, like many others in the industry, is concerned about excessive levels of leverage. A recent report from Galaxy illustrates the risk, showing loan volumes at their highest since 2022 alongside a $1 billion liquidation wave, while Korean regulators have already stepped in to freeze new lending products as they grow concerned about leverage straining markets. “If these companies deploy leverage, and they issue debt to buy Bitcoin with strong triggers, then it’s a big issue,” Quaglini said. In public markets, debt covenants are transparent, meaning traders can anticipate forced selling. “You might be in the situation of the…

Author: BitcoinEthereumNews
Urgent Warning As Long Liquidations Dominate

Urgent Warning As Long Liquidations Dominate

The post Urgent Warning As Long Liquidations Dominate appeared on BitcoinEthereumNews.com. Crypto Short Squeeze: Urgent Warning As Long Liquidations Dominate Skip to content Home Crypto News Crypto Short Squeeze: Urgent Warning as Long Liquidations Dominate Source: https://bitcoinworld.co.in/crypto-short-squeeze-risk/

Author: BitcoinEthereumNews
Asia Morning Briefing: Hex Trust CEO Sees Both Promise and Peril in Bitcoin Treasury Firms

Asia Morning Briefing: Hex Trust CEO Sees Both Promise and Peril in Bitcoin Treasury Firms

Good Morning, Asia. Here's what's making news in the markets:Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk's Crypto Daybook Americas.Digital Asset Treasury (DATs) companies – firms that put bitcoin on the balance sheet – were the talk of the town during BTC Asia in Hong Kong.But corporate adoption of Bitcoin can be a double-edged sword, says Alessio Quaglini, CEO and Co-Founder of crypto custodian Hex Trust. While treasury holdings put crypto on the balance sheets of public companies, he warns that leveraged strategies could turn adoption into a source of instability.“It’s great for the adoption. It’s great because you have basically indirect bitcoin access to billions of people investing in local stock exchanges and Nasdaq,” Quaglini told CoinDesk during a recent interview on the sidelines of BTC Asia in Hong Kong.But he drew a sharp line between healthy diversification and financial engineering.“If this listing company exists for the sole purpose of holding crypto, well then, it’s a hedge fund that is publicly traded. It’s a financial engineering kind of exercise,” he continued.Quaglini, like many others in the industry, is concerned about excessive levels of leverage. A recent report from Galaxy illustrates the risk, showing loan volumes at their highest since 2022 alongside a $1 billion liquidation wave, while Korean regulators have already stepped in to freeze new lending products as they grow concerned about leverage straining markets.“If these companies deploy leverage, and they issue debt to buy Bitcoin with strong triggers, then it’s a big issue,” Quaglini said. In public markets, debt covenants are transparent, meaning traders can anticipate forced selling. “You might be in the situation of the prisoner dilemma… You can have this kind of spiral effect that brings more volatility to the industry.”Even so, Quaglini sees today’s treasury players as a first step.“The next step is that you have real companies that do have a lot of operating cash flow, and they’re sitting on huge amounts of cash, like Apple, Google, etc.,” he said. If those firms start allocating reserves into BTC, the shift would be “extremely positive.”In the end, the real test of the viability of DATs isn’t whether small firms turn themselves into bitcoin proxies, but whether the world’s largest corporates are willing to put their cash piles on-chain.Market MovementBTC: Bitcoin is in the green changing hands above $109K. The world's largest digital asset is stabilizing after August saw a rare rotation out of BTC spot ETFs into ETH funds, which has weighed on relative BTC demand in recent weeks. Broader macro remains supportive but price action is still consolidating beneath mid‑August highsETH: Ether is trading at $4,298. Market participants are easing on profit‑taking after notching record levels late last month and bumping into resistance near the high‑$4,000s. The August ETF flow trend favored ETH, but near‑term consolidation dominates after the run‑upGold: Gold is holding near a four‑month high on mounting bets for a September Fed rate cut and a softer U.S. dollar, both of which typically support bullionNikkei 225: Asia-Pacific markets mostly rose as investors weighed tariff uncertainty and the Shanghai Cooperation Organization summit, with Japan’s Nikkei 225 up 0.31% after a U.S. court ruled most of Trump’s global tariffs illegal.Elsewhere in Crypto:Gavin Newsom Wants to Launch a Meme Coin Just to Troll Trump (Decrypt)South Korea’s FSC chief nominee faces backlash after calling crypto valueless (The Block)Trump Family Share of World Liberty Crypto Grows to $6 Billion (Decrypt)

Author: Coinstats
XRP Price Prediction: What to Expect from XRP in September?

XRP Price Prediction: What to Expect from XRP in September?

The post XRP Price Prediction: What to Expect from XRP in September? appeared on BitcoinEthereumNews.com. Key Insights: XRP price prediction: the asset hovered near $2.74 with a market cap above $167 Billion. Recent moves showed a 3.39% daily drop and an 8.37% weekly decline. Forecasts diverged, with projections spanning from $2.40 to $5.00 by 2030. XRP price traded near $2.74 on August 31, 2025, with market participants watching for direction after a sharp decline. Analysts debated whether the token would rebound toward resistance or extend losses after weeks of consolidation. XRP price tested crucial levels XRP, the token linked to Ripple Labs, maintained a market capitalization above $167 Billion at press time. The token declined by 3.39% in the previous 24 hours, 8.37% over the past week, and 8.20% during the past month. Technical analyst Ali Martinez had highlighted the $2.77 mark as a crucial floor for XRP. In a post on X, he said the token needed to hold above this level to avoid a potential retracement toward $2.40. With XRP trading below $2.77 at press time, that warning gained renewed weight among traders. Martinez based his outlook on classic technical principles. Once a well-tested support level fails, tokens often drop quickly as sell orders cascade. In this case, a break of $2.77 raised the risk of a 14% move down to $2.40, potentially liquidating leveraged positions. Source: Ali Charts X The chart also showed a consolidation phase following mid-August highs around $3.20. Since then, the XRP price had produced lower highs, suggesting weakening momentum. The breach of $2.77 added to concerns that sellers were preparing for a deeper correction. Wider market trends pressured XRP price prediction Market conditions across the digital asset sector also influenced XRP. Both Bitcoin and Ethereum showed limited direction, trading in narrow ranges. Their sideways action weighed on altcoins, including XRP. Data from derivatives platforms indicated more than $500…

Author: BitcoinEthereumNews
"Whales who opened long ETH after selling HYPE" stopped out their ETH long positions by 41,900 in the early morning

"Whales who opened long ETH after selling HYPE" stopped out their ETH long positions by 41,900 in the early morning

PANews reported on September 2nd that according to monitoring by on-chain analyst Yu Jin, the "whale who opened long ETH after selling HYPE" had just increased his ETH long position back to 78,500 coins after reducing his position due to stop-loss during the last decline. As a result, a wave of ETH declines this morning caused his position to be stopped out by another 41,900 coins (US$177 million). After multiple stop-loss orders, the whale lost $31 million in nine days. Now his ETH long position is reduced to only $157 million (36,500 ETH), with a liquidation price of $4,099.

Author: PANews
Urgent $104 Million Wiped Out In An Hour

Urgent $104 Million Wiped Out In An Hour

The post Urgent $104 Million Wiped Out In An Hour appeared on BitcoinEthereumNews.com. Crypto Liquidations: Urgent $104 Million Wiped Out In An Hour Skip to content Home Crypto News Crypto Liquidations: Urgent $104 Million Wiped Out in an Hour Source: https://bitcoinworld.co.in/crypto-liquidations-urgent/

Author: BitcoinEthereumNews
4,000 BTC for 96,859 ETH

4,000 BTC for 96,859 ETH

The post 4,000 BTC for 96,859 ETH appeared on BitcoinEthereumNews.com. A large on-chain entity has converted a significant portion of BTC into ETH, bringing the exposure in Ether to approximately $3.8 billion. The move, reported by industry sources, reignites the theme of rotation from Bitcoin to Ethereum and puts the spotlight back on derivatives, open interest, and volatility. Initial reports of the event were covered by industry outlets like Cointelegraph and analyses on execution mechanisms by specialized financial media like CoinDesk. According to the data collected by our on-chain team updated as of September 1, 2025, the monitored address has increased its exposure in ETH to the estimated figure of $3.8 billion. Industry analysts we collaborate with observe that similar operations, executed in short time frames, tend to be structured through OTC channels and venues with market depth to limit slippage. The professional trading desks consulted also report that spot movements of this magnitude immediately influence the monitoring of the basis and funding in the derivatives markets. Key Data (reconciled) Main swap: 4,000 BTC → 96,859 ETH, executed within a window of approximately 12 hours, as reported by Cointelegraph and BitcoinEthereumNews. Estimated value of the single conversion: ~$435 million [data to be verified], calculation derived from reported market prices; the estimate may vary based on BTC/ETH quotations at the time of the transaction (update September 1, 2025). Total address exposure in ETH: ~$3.8 billion [data to be verified] (overall position, not related to a single transaction). Related movements: deposit of 1,000 BTC on Hyperliquid after the swap, as highlighted on BitcoinEthereumNews. Note: exact BTC/ETH prices and precise transaction timestamps have not been published; on-chain verification is pending. Timeline and On‑Chain Flows Specialist reports tracked the sale of 4,000 BTC, followed by the purchase of approximately 96,859 ETH, with the Ether balance of the monitored address rising to an estimated position…

Author: BitcoinEthereumNews
Crypto Liquidations: Urgent $104 Million Wiped Out in an Hour

Crypto Liquidations: Urgent $104 Million Wiped Out in an Hour

BitcoinWorld Crypto Liquidations: Urgent $104 Million Wiped Out in an Hour The cryptocurrency market just experienced a sudden jolt, with a staggering $104 million worth of futures liquidated in a single hour. This dramatic event, part of a larger trend that saw $453 million in crypto liquidations over the past 24 hours, sends an urgent signal to traders and investors alike. What exactly are these crypto liquidations, and what do these massive figures truly mean for the volatile world of digital assets? Understanding Crypto Liquidations: What Just Happened? When we talk about crypto liquidations, we’re referring to the forced closure of a trader’s leveraged position by an exchange. This happens because the trader’s initial margin – the collateral they put up – is no longer sufficient to cover potential losses. Essentially, the market moved against their bet so significantly that the exchange had to step in to prevent further losses for the trader and the platform. This process is an inherent risk of futures trading, especially when high leverage is involved. Traders use leverage to amplify their potential gains, but it also magnifies potential losses. Therefore, a small market movement can trigger a large-scale liquidation event, as we’ve just witnessed with these substantial crypto liquidations. Why Do These Massive Crypto Liquidations Occur? Several factors contribute to such significant crypto liquidations. Primarily, market volatility plays a crucial role. Cryptocurrencies are known for their rapid price swings, which can quickly push leveraged positions into liquidation territory. A sudden price drop or surge can cascade, triggering multiple liquidations almost simultaneously. High Leverage: Many traders use high leverage, sometimes 50x or even 100x, meaning a small price change can wipe out their margin. Sudden Market Movements: Unexpected news, whale activity, or broader economic shifts can cause rapid price changes. Cascading Effect: One liquidation can trigger others as market orders from forced closures add selling pressure, leading to further price drops and more liquidations. The recent $104 million in crypto liquidations in one hour highlights how quickly these events can unfold, leaving little time for traders to react. The Devastating Impact of Crypto Liquidations on Traders For individual traders, being liquidated is a devastating experience. It means losing their entire margin, and sometimes even more, depending on the exchange’s policies and the speed of the market movement. Beyond the financial loss, there’s a significant psychological toll. Many traders enter leveraged positions hoping for quick gains, only to find themselves caught in a market downturn. These events serve as a stark reminder of the risks involved in futures trading. They underscore the importance of understanding margin requirements, liquidation prices, and implementing robust risk management strategies. Without these precautions, even experienced traders can fall victim to the market’s unpredictable nature, as evidenced by the massive crypto liquidations reported. Navigating the Volatile Landscape: Strategies to Mitigate Risk While crypto liquidations are an unavoidable part of leveraged trading, traders can adopt strategies to minimize their exposure and protect their capital. Prudent risk management is not just a recommendation; it’s a necessity in such a volatile environment. Here are some actionable insights: Use Lower Leverage: Reducing leverage significantly decreases the risk of liquidation. Implement Stop-Loss Orders: These automatically close your position if the price hits a predefined level, limiting potential losses. Manage Position Sizing: Never risk more than a small percentage of your total portfolio on a single trade. Stay Informed: Keep abreast of market news and sentiment to anticipate potential price movements. Diversify Your Portfolio: Don’t put all your eggs in one basket, even within the crypto space. By understanding the mechanics of crypto liquidations and proactively managing risk, traders can better navigate the unpredictable tides of the cryptocurrency market. Conclusion: Learning from Massive Market Shifts The recent figures of $104 million in crypto liquidations in an hour and $453 million over 24 hours are more than just numbers; they represent significant market shifts and personal losses for many traders. These events are powerful reminders of the inherent volatility and risks associated with leveraged cryptocurrency trading. While the allure of amplified gains is strong, the potential for rapid losses through liquidation is equally real. For anyone involved in crypto, understanding the dynamics of futures trading and the mechanisms behind crypto liquidations is crucial. Prioritizing robust risk management, utilizing tools like stop-loss orders, and maintaining a cautious approach are paramount to surviving and thriving in this exciting yet challenging financial frontier. Frequently Asked Questions (FAQs) What does it mean when futures are liquidated in crypto? Futures liquidation in crypto means an exchange automatically closes a trader’s leveraged position because their margin collateral is no longer sufficient to cover potential losses due to adverse market movements. Why did $104 million worth of crypto futures get liquidated so quickly? Such rapid and massive liquidations typically occur due to sudden, significant price movements in the market, amplified by traders using high leverage. This creates a cascading effect where one liquidation triggers others. How can traders avoid crypto liquidations? Traders can reduce the risk of liquidation by using lower leverage, setting stop-loss orders, managing their position sizes, and continuously monitoring market conditions to react promptly to changes. Do crypto liquidations affect the broader market? Yes, large-scale crypto liquidations can increase market volatility and contribute to price downturns, as forced selling pressure from liquidated positions adds to overall market supply. Is futures trading safe in cryptocurrency? Futures trading in cryptocurrency is inherently risky due to market volatility and the use of leverage. While it offers potential for high returns, it also carries a significant risk of substantial losses, including full liquidation of margin. To learn more about the latest crypto market trends, explore our article on key developments shaping cryptocurrency futures price action. Share Your Insights! Did these massive crypto liquidations impact your trading strategy? Share your thoughts and experiences with us on social media! Your insights help our community stay informed and resilient in the face of market volatility. Don’t forget to share this article to help others understand these crucial market dynamics. This post Crypto Liquidations: Urgent $104 Million Wiped Out in an Hour first appeared on BitcoinWorld and is written by Editorial Team

Author: Coinstats
Ethereum Price Forecast: ETH attracts $8 billion from Bitcoin whale rotation and institutional investors

Ethereum Price Forecast: ETH attracts $8 billion from Bitcoin whale rotation and institutional investors

Ethereum (ETH) trades around $4,300 on Monday after attracting nearly $8 billion in capital inflows across a $4 billion Bitcoin whale rotation and $3.95 billion into ETH investment products throughout August.

Author: Fxstreet