5 Minutes
Market Snapshot: Over $1.3 Billion Liquidated in 24 Hours
The crypto market experienced a sharp sell-off that erased more than $1.3 billion in leveraged positions within a single day as Bitcoin (BTC) slipped below the $105,000 mark. The cascading liquidations were concentrated in long positions, reflecting a rapid shift in risk appetite among leveraged traders amid rising macroeconomic uncertainty and thin order books on major perpetual futures venues.
Key Liquidation Figures and Asset Breakdown
Overall and directional breakdown
Data aggregated by CoinGlass shows total market liquidations of approximately $1.37 billion over the last 24 hours, with nearly 90% of that total coming from long positions. Long traders accounted for roughly $1.23 billion wiped out, while short positions represented around $143 million. The imbalance underscores how bullish leverage dominated exposure heading into the pullback.
Top coins by liquidation volume
Bitcoin led the losses with nearly $397 million in liquidations, of which roughly $377 million were long BTC positions. Ethereum (ETH) followed closely with about $368 million in liquidations, including roughly $323 million of long positions. Other major cap altcoins also felt the pressure — XRP, Solana and several layer-1 tokens recorded notable liquidations as stop-losses and margin calls cascaded through thin liquidity windows.
Trader Impact and Notable Events
Mass liquidations and single largest event
More than 300,000 traders were forcibly closed during the downturn. The largest single recorded liquidation took place on HTX, where a $47.87 million BTC-USDT long position was auto-closed after margin was exhausted. High-concentration long exposure across exchanges and concentrated large positions on low-liquidity order books amplified volatility and accelerated the liquidation cascade.
Price Moves, Market Cap and Sentiment
Price action and market cap
Bitcoin extended intraday losses to test lows below $105,000, trading down roughly 2–3% over 24 hours at the time of reporting. Ethereum fell over 5% to trade near $3,500, while XRP and Solana were among the weaker top-ten performers — XRP declined more than 5% and Solana plunged over 9% during the drop. Together, the pullback shaved about 2.5% off the total crypto market cap, which fell to roughly $3.59 trillion — its lowest level since mid-July.
Fear and Greed Index & market psychology
Risk gauges reacted sharply: the Crypto Fear and Greed Index tumbled into the "Extreme Fear" zone at a reading near 21. The index collapse highlights how quickly sentiment can sour when leveraged longs unwind and liquidity tightens, prompting momentum-driven selling across major tokens.
Drivers: Liquidity, Fed Signals and Macro Data
Shallow order books and perpetuals
Analysts point to shallow order books across major perpetual futures markets as a key contributor to the spike in volatility. During off-peak trading hours, limited resting liquidity left markets vulnerable to large market orders and stop hunts, which then triggered successive margin calls across exchanges.
Macro catalysts
Macro headlines also weighed on sentiment. A firmer U.S. dollar and diminishing odds of an additional Federal Reserve rate cut this year were cited as primary catalysts. Recent cautious commentary from Fed officials pushed markets to reprice expectations for monetary easing, reducing the perceived tailwind for risk assets including crypto. Traders will closely watch a packed U.S. economic calendar — job openings, payroll indicators and inflation gauges — for further cues on potential rate moves.
Outlook: Recovery, Rotation or Continued Volatility?
Analyst perspectives
While the drawdown interrupted Bitcoin's recent bullish run, several market participants described the correction as a "healthy reset" rather than a structural reversal. After significant gains through much of 2025, a period of consolidation was widely expected. Market strategists see the near-term outlook hinging on upcoming macro data and any shift in Fed messaging. A clearer easing signal or softer inflation prints could reignite buying, while stronger labor prints could maintain pressure on risk assets.
What traders should watch
Traders should monitor liquidity depth on exchanges, open interest in futures and funding rates for signs of rebuilding risk appetite. On-chain indicators, spot flows and institutional activity into DeFi and custody solutions may also provide early clues to a stabilization or renewed momentum. For now, risk management remains critical: high leverage and concentrated longs have proven to be the primary source of vulnerability during rapid pullbacks.
As markets digest the liquidation event and upcoming economic data, crypto investors will be balancing potential upside from network upgrades and institutional adoption against macro-driven volatility. Maintaining disciplined sizing and watching funding and order-book dynamics can help navigate what may be a choppy period for Bitcoin, Ethereum and broader altcoin markets.
Source: crypto
Comments
blockzen
wow brutal day for longs... over 1.3B gone? stop hunts and thin books. small traders got wrecked, sad and messy
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