The cryptocurrency market is experiencing a significant correction after a tumultuous 24 hours that saw $200 million in liquidations across the network. This massive sell-off has affected more than 97,000 users, with the largest liquidation order occurring in the bitmex 
bitmex [emailย protected] Centralized exchange 
XBTUSD, valued at a staggering $3.86 million.
Understanding Crypto Settlements
Cryptocurrency liquidations occur when a trader's margin account is unable to sustain its open positions due to substantial losses or insufficient margin to meet maintenance requirements. This process, initiated by exchanges or brokerage platforms, forcibly closes the trader's positions at the market price to cover losses and debts.
Liquidation is intended to prevent further losses for both the trader and the exchange, and can occur automatically when certain margin thresholds are exceeded. Currently, Coinglass data It indicates that in the last 24 hours, 85,746 merchants were liquidated, with a total liquidation of 174.87 million dollars.
The breakdown of various exchanges shows that Binance experienced $4.81 million in liquidations, the majority of which were short positions, while OKX and Bybit saw $2.48 million and $1.10 million in liquidations, respectively. These liquidations predominantly affected long positions, indicating a significant change in market sentiment.
The current state of the crypto market
As a result of this extensive liquidation event, the cryptocurrency market has taken a bearish turn. The top 20 cryptocurrencies, which were previously in the green and showing bullish sentiment, have fallen into the red.
The market mood has shifted from greed to neutrality and is presumably heading towards fear, reflecting investors' cautious stance following this sell-off. This correction is a crucial reminder of the volatile nature of the cryptocurrency market. Investors and traders are advised to remain vigilant and informed about market movements as such drastic changes can occur quickly and have widespread impacts.
