Traders lost $717 million in 24 hours as crypto market collapsed

Liquidation of positions of cryptocurrency exchanges’ users started after FTT token exchange rate collapsed 70% in 24 hours and bitcoin updated its minimum since November 2020

The amount of liquidation of margin positions in the crypto market exceeded $717 million in 24 hours, according to CoinGlass. In just 24 hours, 329,000 traders were forced to close their positions. The largest single liquidation occurred on Binance in the bitcoin pair and reached $6.7 million.

71% of positions liquidated during the day were long. This means that traders opened them in anticipation of further market growth. When the quotes go in the opposite direction, crypto exchanges forcibly close positions in order not to lose their funds.

The largest number of liquidations was in pairs with bitcoin – $233.8 million. Ethereum is on the second place with the amount of losses of traders of $176 million. In the third place is altcoin Solana, in pairs with which there were forced closures of positions for $43 million.

On November 8, bitcoin updated its two-year low at $17,58 thousand, according to CoinGecko. At major cryptocurrency exchanges, the value of BTC on spot trades fell to 17.16 thousand USDT, the cost of futures – to 16.8 thousand USDT.

At the same time, the value of the crypto exchange’s own token FTX (FTT) plummeted by 72%. This happened after the purchase of FTX was announced by the cryptocurrency exchange Binance. Its head Changpeng Zhao said that the trading floor sought help due to a serious liquidity crisis.