Ether Futures Lead $1.2B in Liquidations, Crypto Market Cap Drops 16% Overnight

The past 24 hours were among of the biggest crypto market drops in recent months.

Ether futures led liquidation losses in the past 24 hours as crypto markets lost over 16% of their overall capitalization, data from multiple sources show.

Liquidations in the crypto market happen when a trader has insufficient funds to fund a margin call – or a call for extra collateral demanded by the exchange to keep the trading position funded. They’re especially common in high-risk trading due to the high volatility of assets. It occurs in both margins and futures trading.

Traders of ether futures lost $333 million to liquidations as the asset lost 22% to drop under the $1,900 level. This was the highest among all cryptos, with bitcoin futures seeing $330 million in losses and futures tracking Terra’s LUNA racking up $130 million in losses.

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