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Electronic Money Liquidation Exceeds $300 Million as Bitcoin Reaches $102,000
Data shows that the cryptocurrency derivatives market has witnessed a large volume of liquidation transactions in the past day as Bitcoin and other cryptocurrencies have increased in value. Both Crypto Long & Short Liquidations are High Today According to data from CoinGlass, a large amount of liquidation money has poured into the cryptocurrency derivatives sector following market fluctuations. "Liquidation" here refers to the mandatory closure that any open contract must go through after accumulating a certain level of loss (the exact percentage may vary between platforms). Below is the table displaying data on the liquidation rounds that have occurred in the cryptocurrency field in the past 24 hours.
As can be seen, the total liquidation amount during this period is nearly $306 million. Of that, $154 million of related contracts are long positions, while $151 million are short positions. This remarkable division shows that no party in the market is more affected than the other, which is quite interesting considering the context of the price of Bitcoin and other coins that have risen in the past day. It seems that traders are very excited to take long positions with high leverage in this recovery phase, which makes any retracement on the way up cause them to suffer losses and increase long-term liquidity. In terms of contribution to derivative products through individual symbols, Bitcoin once again leads with nearly 98 million dollars in liquidation.
Ethereum (ETH) and XRP (XRP) have completed the top three with $37 million and $25 million in liquidations, respectively. These top three coins are also the top three coins in the market capitalization list. However, the fourth position in the liquidation did not match the market capitalization ranking, because in reality, Dogecoin (DOGE) followed XRP with nearly $16 million in contracts. The significant contribution to the tightening of memecoin could be due to the fact that its popularity means that speculators are driven to it more than larger altcoins like Solana (SOL). In other news, Bitcoin Open Interest has decreased compared to the recent market capitalization, as analyst James Van Straten pointed out in a post on X.
"Open interest" is a measure of the total number of Bitcoin derivative positions currently open across all centralized exchanges. Significant speculative activity often leads to volatility for an asset, so the ideal ratio of this data to market capitalization should be low. From the chart, it can be clearly seen that this ratio soared to a peak of 2.8% in November, but its value has since dropped to around 2.4%, a healthier level. DYOR! #Write2Earn #JobsBoomVsFed $BTC {spot}(BTCUSDT)