Bitcoin Market Sees $284M Futures Liquidation: Understanding the Risks

The cryptocurrency market recently experienced a notable event, with over $284 million in futures contracts being liquidated within just one hour. This sudden and significant move highlights the volatility inherent to leveraged trading. While this may seem alarming, understanding the underlying mechanisms behind these liquidations is crucial for traders. 24 hours later, the total liquidation figure reached an alarming $832 million, signaling a period of intense pressure in the market. This begs the question: what exactly triggers these large-scale liquidations and how can traders prepare for such volatility?