Leveraged Liquidations

Definition ∞ Leveraged liquidations are the forced closure of a trading position by an exchange or decentralized protocol when an investor’s collateral value falls below a predetermined maintenance margin. This event is typically triggered by adverse price movements in the underlying asset. The process safeguards lenders from potential default.
Context ∞ These liquidations are a frequent occurrence in highly volatile cryptocurrency markets, especially during rapid price declines. Large-scale liquidations can exacerbate market downturns, initiating a cascade effect that is a common subject in market analysis and breaking news reports during periods of instability.

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→Asset Correlation

→Futures Market

→Digital Asset Prices

Bitcoin Pulls Back after Record High, Triggers Liquidations

After hitting a new record, Bitcoin saw a sharp correction driven by profit-taking and significant leveraged liquidations, a typical market reset.

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→AI Bubble Concerns

→Price Action

→Bitcoin Price Dip

Crypto Market Sees $700 Million Liquidations, Prices Dip

A significant wave of leveraged position liquidations, totaling over $700 million, triggered a broad crypto market correction, impacting major digital assets.

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→Investor Sentiment

→Crypto Volatility

→Bitcoin Price

Crypto Market Plunges $150 Billion amid Risk Aversion

The crypto market experienced a sharp $150 billion decline as investors pulled back from risky assets, driven by economic fears and liquidations.

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→Economic Uncertainty

→Market Downturn

→Options Expiry

Crypto Market Drops Sharply amid Economic Fears and Liquidations

The crypto market experienced a significant downturn, with major digital assets falling due to broad economic worries and widespread leveraged liquidations.

A futuristic white cylindrical mechanism, resembling a sophisticated blockchain node, expels a dense cloud of white vapor against a deep blue background. This visual metaphor illustrates an interchain protocol generating high transaction throughput, akin to scalable layer-2 solutions. Solar arrays signify energy efficiency or validator rewards sustaining decentralized infrastructure. The emitted data stream symbolizes complex smart contract execution and cryptographic primitives contributing to network consensus and robust tokenomics.

→Leveraged Liquidations

→Liquidations

→Economic Uncertainty

Crypto Market Dips on Macroeconomic Fears and Liquidations

The crypto market recently experienced a significant dip, driven by global economic uncertainties, substantial leveraged liquidations, and cautious investor sentiment.

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→Market Downturn

→Price Correction

→Leveraged Liquidations

Crypto Market Dips amid Shutdown Fears, Liquidations, and ETF Outflows

The crypto market experienced a notable downturn as fears of a U.S. government shutdown, significant leveraged liquidations, and institutional outflows converged.