A dramatic wave of liquidations has swept through the cryptocurrency market, wiping out billions in leveraged positions as major tokens plummeted to multi-week lows. This significant deleveraging event impacted over 1.6 million traders, primarily affecting those with long positions, as Bitcoin, Ethereum, and Solana led a broad market downturn.
Data from CoinGlass reveals that nearly $19 billion in leveraged bets were liquidated within a single day. This substantial figure underscores a rapid shift in market sentiment from optimism to apprehension. The majority of these losses stemmed from highly leveraged long positions, accounting for approximately $16.75 billion of the total liquidated volume. A notable incident involved a single Ethereum-USDT trade on Hyperliquid valued at over $203 million, which was closed in one transaction.
The price of Bitcoin fell to $101,000 before stabilizing around $112,000, marking an 8% daily decline. Ethereum experienced a more severe downturn, dropping 13% to $3,814, with cascading liquidations accelerating its fall. Together, these two leading cryptocurrencies accounted for close to $10 billion of the total liquidations.
The selling pressure extended to other major altcoins. Solana depreciated by over 15% to approximately $184, while XRP and Cardano saw declines of 12% and 17%, respectively. Solana alone experienced about $2 billion in liquidated long positions, making it one of the hardest-hit assets during this session.
Market analysts suggest that the record volume of liquidations highlights the market’s vulnerability when high leverage encounters sudden price drops. Technical indicators such as the Relative Strength Index (RSI) and MACD continue to signal oversold conditions, indicating that further volatility may occur if investor confidence does not recover promptly.
Given the overall contraction in the cryptocurrency market capitalization and reduced liquidity across both spot and futures markets, investors are preparing for a potentially prolonged corrective phase. This environment necessitates a cautious approach as market participants reassess risk exposure amidst ongoing price discovery.
Chris brings over six years of hands-on experience in cryptocurrency, bitcoin, business, and finance journalism. He’s known for clear, accurate reporting and insightful analysis that helps readers stay informed in fast-moving markets. When he’s off the clock, Chris enjoys researching emerging blockchain projects and mentoring new writers.