Cryptocurrencies
Crypto Traders Stung by Liquidations on Leveraged Exchanges
- Liquidations on BitMex exchange spike as Bitcoin price plunges
- The higher the leverage used, the closer the liquidation point
Photographer: Jung Yeon-Je/AFP via Getty Images
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Cryptocurrency investors are learning a hard lesson about the downside of leverage during the global rout across asset classes.
With prices down more than 15% since March 6, thousands of traders have been facing liquidations on BitMex, the world’s largest Bitcoin derivatives exchange. On Sunday, the Seychelles-registered trading platform had the most Bitcoin-related liquidations in three months, according to crypto derivatives tracker Skew.