Nearly $6 billion: Crypto futures market saw the highest amount of liquidations in its history on Monday
February 23, 2021, 12:50PM EST
1 min read
The crypto futures market saw the highest amount of liquidations in its history on Monday.
In the last 24 hours, the market saw $5.77 billion worth of liquidations, according to tracker Bybt, a development triggered by a broad decline in the price of bitcoin and other cryptocurrencies.
By comparison, March 2020's so-called "Black Thursday" saw a total of $4.1 billion worth of liquidations, according to data provided to The Block by Bybt.
Source: Bybt, The Block Research
During the Black Thursday event, bitcoin's price fell about 50% and led to significant liquidations at the time. Compared to that percentage, the latest bitcoin fall is relatively lower at around 17%, despite higher liquidations.
The maturity of the crypto market could be one reason for the relatively lower price decline. Several crypto exchanges now offer futures trading, compared to a period when BitMEX dominated the market. The level of open interest today is also significantly higher than it was last March.
Despite the current market volatility institutional demand for crypto has not lessened although historically, access has been difficult. Crypto futures are set to transform capital markets infrastructure and can offer frictionless, regulated and round-the-clock trading.
Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.