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Crypto Market Faces $2.56 Billion Liquidations on January 31

Crypto Market Faces $2.56 Billion Liquidations on January 31

CoinGlass data shows $783 million in liquidations in a day, impacting over 188,000 traders, underscoring the persistent risks of leveraged trading during high volatility.

ETH
HYPE

Fact Check
The evidence strongly supports the truthfulness of the statement. There are multiple, direct confirmations from relevant industry sources. Specifically, news reports from cryptocurrency exchanges Phemex, MEXC, and KuCoin all explicitly state that approximately $2.56 billion in liquidations occurred on January 31. These sources have perfect relevance to the claim.Furthermore, this central claim is corroborated by other high-authority sources. A Coinpaper report details a massive sell-off on the same day, noting that Ether liquidations alone surpassed $1.15 billion, while another report from the same outlet confirms over $1 billion in liquidations stemmed from a Bitcoin price drop. These partial figures align with and make the total of $2.56 billion highly plausible.There are no contradictions among the relevant sources provided. Several sources were correctly identified as irrelevant (those pertaining to ETF flows or bull market indicators) and do not detract from the assessment. The consistency across multiple independent news outlets and exchanges provides a high degree of confidence in the accuracy of the reported figure.
Summary

CoinGlass reported $783 million in crypto market liquidations over the past 24 hours, affecting 188,429 traders. Long positions accounted for $486 million of losses, while shorts saw $296 million liquidated. The largest single liquidation involved $13.52 million in a Hyperliquid ETH-USD contract. This follows previous data showing extreme volatility such as $2.56 billion in liquidations on January 31, highlighting ongoing leveraged trading vulnerability.

Terms & Concepts
  • Liquidation: The forced closure of a trading position when a trader’s margin falls below the required threshold, often due to adverse price movements.
  • Long Position: A trading strategy where an investor buys an asset expecting its price to rise, profiting from upward market movements.
  • Short Position: A trading strategy involving selling an asset the trader does not own, anticipating a price drop to buy it back cheaper.