Crypto Liquidations Surge as Leverage Increases

Daily cryptocurrency liquidations have increased sharply this cycle, nearly tripling from previous levels. This surge is fueled by higher leverage, driven by expanding open interest and increased trading activity across exchanges. According to Glassnode and Fasanara, average daily futures wipeouts have risen significantly – exceeding $68 million in long positions and $45 million in shorts this time compared to around $28 million in long positions and $15 million in shorts previously.