Over $122M Bitcoin longs liquidated as BTC falls below $61K

The incoming selling pressure from the Mt. Gox repayment could still cause Bitcoins price to fall below the psychological $60,000 mark.

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Bitcoin to $102,700, Could Cause $1.45 billion Long Positions to Experience Liquidation

Bitcoin risks going down to $102,700, which could trigger the liquidation of close to $1.45B in long positions.

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Crypto Whale Suffers $308 Million Loss in Highly Leveraged Ether Trade

An Ether trader recently suffered a significant loss of $308 million due to high leverage and market volatility. Leveraging their position at 50 times the original amount, the trader faced immense risk as the cryptocurrency market experienced extreme price fluctuations. The trader’s loss serves as a cautionary tale for those involved in high-risk trading practices. [...]

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Crypto Derivatives Explained: What They Are, How They Are Traded, And Their Best Practices

Crypto Derivatives are available in a variety of forms, including futures, options, forwards, and perpetual contracts.

Continue reading Crypto Derivatives Explained: What They Are, How They Are Traded, And Their Best Practices at DailyCoin.com.

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Prime XBT Review: Cryptocurrency Trading Exchange With 100x Leverage

Prime XBT is a trading platform launched in 2019 that lets traders take advantage of the ability to trade Bitcoin and other major cryptocurrencies with leverage. They have quickly become one of the major players in the margin-trading industry taking on heavyweights such as BitMex. The exchange aims to overcome the common problems of other [...]

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Crypto Liquidations Cross $2.22 Billion, Heres How Much Dogecoin Traders Lost

The entire cryptocurrency market has experienced a steep decline over the past 24 hours, with its total market cap plunging by double digits following a barrage of volatile price swings. Unsurprisingly, this sharp downturn has led to widespread liquidations among multiple assets within the past trading day. Notably, this wave of liquidations has led to over $2.22222 billion being wiped from cryptocurrencies in the past 24 hours.  According to Coinglass data, Dogecoin traders have witnessed significant losses, with numbers placing the meme coin among the hardest-hit assets in this liquidation event. Dogecoin Traders Lose Over $82 Million In 24 Hours Data from Coinglass reveals that Dogecoin liquidations have been among the most severe in the market over the past 24 hours, as leveraged positions crumbled under the weight of rapid price swings. A closer look at the data shows that the vast majority of these liquidations stemmed from long positions, with bullish traders suffering losses amounting to $69.32 million. These traders, mostly expecting a rally this week or at least a stable market, were caught off guard as Dogecoins price took a sharp turn downward alongside the rest of the market, forcing liquidations and cascading losses.  Related Reading: 70 Million DOGE Make Their Way To Binance Amid 10% Dogecoin Price Crash Interestingly, despite the broader trend leaning toward a price decline, short sellers were not spared from the liquidation frenzy. Data shows that $13.35 million worth of short positions were liquidated, suggesting that brief price spikes occurred during the general downtrend. These momentary surges may have triggered stop losses for some short traders, leading to forced liquidations even as the overall trajectory remained bearish.  Market-Wide Liquidations Top $2.22 Billion Amid High Volatility The cryptocurrency market has kicked off the new week on a bearish note following a period of consolidation throughout the previous week. Bitcoin, which had maintained relative stability, saw a sharp decline as the weekend came to a close, breaking below the $100,000 mark on Sunday and continued to extend the downside move from there. Related Reading: Crypto Fear And Greed Index Barrels Toward Extreme Greed Again As Bitcoin Price Clears $101,000, Is This Good News? Bitcoins decline triggered a broader market sell-off, with several major cryptocurrencies following suit. At the time of writing, the global crypto market cap has dropped by approximately 11% over the past 24 hours and is now at $3 trillion, its lowest level since November 15, 2024. As such, the broader cryptocurrency market has experienced a brutal shakeout in the past 24 hours, with liquidations surpassing $2.22 billion.  Bitcoin and Ethereum traders have taken the biggest hits in this liquidation spree. Bitcoin alone has recorded over $406.96 million in liquidated positions, with the majority being long trades of $341.36 million in the past 24 hours. However, Ethereum traders have experienced the heaviest liquidations, with $601 million in positions wiped out. With Dogecoin experiencing $82.67 million in liquidations, the aftermath of this sell-off could set the stage for increased volatility alongside other cryptocurrencies in the short term. At the time of writing, Dogecoin is trading at $0.235, down by 22.5% in the past 24 hours. Featured image from Adobe Stock, chart from Tradingview.com

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Binance to Cease Support for Leveraged Tokens by April 2024

Binance announces the cessation of support for leveraged tokens by April 2024, urging users to adjust their holdings and trading strategies in light of the upcoming changes. (Read More)

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Unpacking Leveraged ETFs: A Comprehensive Guide on How They Operate

Exchange-traded funds (ETFs) have become a popular investment choice for many individuals looking to diversify their portfolios. Among these, leveraged ETFs offer a unique opportunity for investors seeking to amplify their returns by using financial derivatives. In this article, we will explore how leveraged ETFs work and the risks and benefits associated with them. Leveraged [...]

The post Unpacking Leveraged ETFs: A Comprehensive Guide on How They Operate appeared first on Crypto Breaking News.

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Leveraged ETFs explained: How do they work?

Leveraged ETFs in crypto use borrowed funds or derivatives to amplify returns, but their daily rebalancing and higher risks make them most suitable for short-term traders.

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How Bitcoin ETF Investors Can DOUBLE Their Investment, Without Adding a Penny More!

Bitcoin's wild price swings have long been both an opportunity and a challenge for investors. But what if there was a way to potentially  double  your investment gains without injecting more capital? Enter 2X leveraged Bitcoin ETFs  , a high-powered approach that allows investors to magnify their exposure to Bitcoins daily movements without directly buying more Bitcoin.

Investors looking to maximize their returns with a traditional brokerage account, these funds provide a unique way to enhance profits while managing risk effectively. Below, we dive into three of the top 2X leveraged Bitcoin ETFs available today.

Understanding 2X Leveraged Bitcoin ETFs

A leveraged ETF aims to amplify the daily returns of an underlying assetin this case, Bitcoin. If Bitcoin rises 5% in a day, a 2X leveraged Bitcoin ETF could return 10%  . However, if Bitcoin drops by 5%, the ETF would fall 10% in value. This daily resetting nature makes these funds a powerful short-term trading tool but also introduces additional risks due to compounding effects over longer holding periods.

There's several options, and you may initially think - they're all 2X Bitcoin ETF, so they all perform the same - but that isn't the case. Each has small differences in how they operate, and thus, how they perform.  Here's the rundown:

BTCL T-Rex 2X Long Bitcoin Daily Target ETF  

How It Works: BTCL achieves 2X daily exposure to Bitcoin prices by investing in swap agreements with major financial institutions.

- Key Feature: Aims to provide 200% of the daily return of Bitcoins price movements.

- Who Its For: Traders seeking an aggressive short-term position on Bitcoins price fluctuations.

- Risk Factor: Higher volatility due to the use of swap agreements, making it ideal for those who can actively manage their position.

BITU ProShares 2X Bitcoin ETF  

How It Works: BITU delivers twice the daily performance of Bitcoin without requiring direct ownership of Bitcoin or dealing with leverage-related costs.

- Key Feature: It can be bought and sold through a traditional brokerage account  , making it highly accessible.

- Who Its For: Investors looking for a simple way to gain leveraged Bitcoin exposure without complex futures contracts.

- Risk Factor: As with any 2X ETF, daily rebalancing means returns can diverge from expectations over longer periods due to compounding effects.

BITX Volatility Shares 2X Bitcoin ETF  

How It Works: BITX tracks 200% of Bitcoins daily movement through futures contracts, adjusting daily to maintain leverage.

- Key Feature: Uses a rolling futures strategy to maintain exposure and accommodate investor inflows and outflows.

- Who Its For: Investors familiar with futures trading who want a leveraged position in Bitcoin without direct futures contract management.

- Risk Factor: The reliance on rolling futures could lead to costs from  contango  (when futures prices exceed spot prices), impacting returns.

Is a 2X Bitcoin ETF Right for You?  

Leveraged Bitcoin ETFs are best suited for traders and investors who want to maximize gains on short-term Bitcoin movements without tying up extra capital. These funds are designed for those who understand the risks of amplified losses and are comfortable with market volatility.

Additionally, they require active monitoring and rebalancing to maintain optimal exposure. Investors who prefer to trade Bitcoin through a traditional brokerage account rather than directly purchasing and holding the cryptocurrency may find these ETFs a convenient alternative.

Final Thoughts: The Power of Smart Leverage  

2X leveraged Bitcoin ETFs offer a strategic way to potentially double their investment without adding more capital. However, they require active management  , a clear understanding of leveraged ETF mechanics, and a tolerance for volatility. By choosing the right ETFBTCL, BITU, or BITXinvestors can harness Bitcoins price movements for greater gains while navigating market risks intelligently.

Remember: Leverage works both ways, so while profits can double, losses can too. Approach with caution and a clear investment strategy.

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Author: Oliver Redding
Seattle Newsdesk  / Breaking Crypto News

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Crypto Turmoil: Market Slump, Heavy Liquidations, and Unexpected Gainers

In a volatile twist, the cryptocurrency market experienced a 0.82% decrease in value within the last day, descending to $1.2 trillion. This transpired as bitcoin (BTC) faced unstable conditions, dropping below the crucial $30K mark on Tuesday. Crypto Market in Flux Throughout this chaotic 24-hour period, leveraged digital asset traders observed a colossal liquidation of [...]

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Leveraged ETH ETF demand up 160% since Trump win Ether price to $4K?

Bitcoin remaining range-bound below $100,000 may be a net positive for Ethers price and invite more investment in the worlds second-largest cryptocurrency.

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