vvooki รีทวีตแล้ว

Everyone is talking about the $19B in crypto liquidations, the biggest ever in dollar terms, but context matters:
Back in March 2020 during the COVID crash, about $1.2B in positions were liquidated when the total market cap was only around $150B, that’s roughly 0.8% of the entire market gone overnight.
During the FTX collapse in November 2022, around $1.6B was liquidated out of an $800B market, about 0.2%.
Yesterday’s event saw $19.1B liquidated while the market cap sits near $3.9T, roughly 0.5%.
So yes, this was the largest liquidation ever in dollar value, but not the biggest crash in percentage terms. The 2020 COVID meltdown was still worse relative to market size.
The takeaway, leverage was extreme, but the market is now deep and resilient enough to absorb record liquidations without collapsing. Also the way these people write the headlines is misleading, you cannot just look at $ value.
Quinten | 048.eth@QuintenFrancois
Covid crash: $1.2B in liquidations FTX crash: $1.6B in liquidations Today: $19.31B in liquidations You wished you bought during the COVID crash. This is your COVID crash.
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