Kraken It has reached an agreement with the US Securities and Exchange Commission on a liquid staking platform. This development led to a decline in the market. This decline was felt most by futures traders who traded on further growth.
bitcoin (BTC) and Ethereum (ETH) are down nearly 5%, while long transactions or higher-priced Kraknra transactions have taken up 90% of the $220 million liquidation in crypto futures in the past 24 hours. Bitcoin and Ethereum futures cumulatively saw liquidation of $100 million, while futures trailing Dogecoin (DOGE), Solana (SOL), Ripple (XRP) and Aptos (APT) liquidated $4 million each.
This is the highest level of liquidation since last November for long traders or direct holders of securities. Crypto exchange Binance received the most liquidation of $95 million among counterparties, with OKX registering $47 million.
Liquidations occur when an exchange forcibly closes an investor’s leveraged position due to partial or complete loss of the investor’s initial margin. It happens when a trader is unable to meet the margin requirements for a leveraged position, that is, they do not have enough funds to keep the trade open.
Liquidation data is useful to traders as it serves as a signal that leverage is being effectively cleared from popular futures products. It acts as a short-term indicator of a decline in price volatility.
Kraken as a service for US customers crypto- It has agreed to terminate the staking platform “immediately” and pay $30 million to settle the Securities and Exchange Commission (SEC) accusations of offering unregistered securities.