Kraken’s settlement spurs the decline of crypto assets ── Liquidation of more than $ 200 million occurs in the futures market | coindesk JAPAN | Coindesk Japan

The settlement with the U.S. Securities and Exchange Commission (SEC) over Kraken’s liquid staking platform has spurred a decline in the cryptocurrency market, with implications for futures traders betting on further growth in this market. I felt it the most.

Bitcoin (BTC) and Ethereum (ETH) have fallen nearly 5%, leading to long trades, or higher prices, of the $220 million liquidation in cryptocurrency futures trading over the past 24 hours. bets on accounted for 90%. Bitcoin and Ethereum futures have a combined $100 million liquidation, with 400 each tracking Dogecoin (DOGE), Solana (SOL), XRP and Aptos (APT). 10,000 dollars (about 524 million yen) was settled.

This marked the highest level of liquidation since November last year for a long trader or anyone holding cryptocurrencies. Cryptocurrency exchange Binance had the most liquidations with more than $95 million, while OKX had $47 million.

Liquidation occurs when an exchange is forced to close a trader’s leveraged position due to the loss of some or all of the trader’s initial margin. A situation where a trader does not have enough margin to meet a leveraged position, i.e. not enough money to continue trading.

Liquidation data is useful for traders. It shows the effective washing of leverage from popular futures products and serves as a short-term indicator of lower price volatility.

Kraken will “immediately” terminate its staking platform for American customers and pay $30 million to settle SEC charges that it offered unregistered securities. agreed to pay a settlement of 30 million yen.

｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Shutterstock
｜Original: JLong Traders Bear Brunt as Bitcoin, Ether Slide Spurs $220M in Liquidations