Altcoin Liquidations Total $250M in Last 24 Hours

Ordi Protocol (ORDI) and Big Time (BIGTIME) tokens led excessive liquidations on altcoin futures, totaling $250 million in the past 24 hours, CoinDesk wrote in a report on the industry’s inherent and sudden volatility.

The above figure of $250 million does not include the liquidations of bitcoin and ether futures, which resulted in a total of $85 million lost.

The aftermath

Liquidations of ORDI futures totaled $15 million, followed by $12 million on BIGTIME. They consisted of short and long bets, which are bets on lower prices or higher prices respectively. Traders on both sides lost money from ORDI and BIGTIME price developments.

The background

ORDI gained almost 600% in November due to increased demand for tokens associated with Bitcoin. ORDI is connected to Bitcoin’s ecosystem. BIGTIME token holders benefited from a surge in the popularity of crypto gaming platforms. The token added almost 400% to its value in November.

Other losers

ORDI and BIGTIME holders weren’t the only losers. Traders of Memeland’s MEME and Celestia’s TIA lost $10 million. Both tokens were issued in November.

On Monday, the prices of LUNC, LUNA, and USTC gained up to 70% only to plummet the next day, with traders losing some $11 million.

What do large liquidations mean?

Large liquidations can signal profit-taking, market correction, risk management, or margin calls. Traders and investors may decide to sell a large amount of cryptocurrency to secure profits. Liquidations of a great magnitude can occur in response to a perceived overvaluation or a correction in the overall cryptocurrency market.

Institutional investors or large traders might liquidate a significant portion of their cryptocurrency holdings as part of risk management strategies.

Finally, traders using leverage to amplify their positions face margin calls if the market moves against them.