$298M Crypto Liquidations Rock BTC and ETH Traders

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Coinomedia2025/05/08 04:22

By:Isolde VerneIsolde Verne

Crypto liquidations hit $298M in 24 hours, with BTC and ETH leading losses. Here's what caused the wipeout.A Rough Day for Crypto TradersWhat Triggered the Liquidations?Caution Ahead for Leverage Users

$298M in positions were liquidated in 24 hours
Bitcoin and Ethereum faced the largest losses
Market volatility and leverage triggered the wipeout

A Rough Day for Crypto Traders

The crypto market just witnessed a major shake-up, with a staggering $298 million in trader positions liquidated in the last 24 hours. The bulk of these losses came from Bitcoin ( BTC ) and Ethereum ( ETH ), which saw liquidations of $98.45 million and $63.82 million, respectively.

These figures highlight the risk traders face when using leverage—a common strategy in crypto markets that can amplify both gains and losses. When prices move sharply against heavily leveraged positions, forced liquidations kick in, wiping out open positions automatically.

What Triggered the Liquidations?

This wave of liquidations was driven by a sudden bout of market volatility, which caught many leveraged traders off guard. Bitcoin’s price fluctuations, combined with a broader sense of uncertainty in global markets, led to a domino effect of margin calls.

Traders betting on upward momentum were particularly hard hit as BTC and ETH saw abrupt price dips. The high level of open interest and the thin market liquidity during off-peak trading hours further intensified the impact.

🚨 LATEST: $298M in trader positions wiped out in the past 24 hours, led by $BTC and $ETH liquidations at $98.45M and $63.82M. pic.twitter.com/uqX9hojtbB
— Cointelegraph (@Cointelegraph) May 7, 2025

Caution Ahead for Leverage Users

Events like this underscore the importance of risk management in crypto trading. Leverage can be a powerful tool, but it comes with significant dangers. When prices move quickly, as they often do in crypto, even small shifts can result in massive losses.

As the market stabilizes, analysts suggest that traders be more cautious with leverage, especially during volatile periods. Keeping an eye on market sentiment and macroeconomic indicators can help avoid falling into the same trap.

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Disclaimer: The content on CoinoMedia is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency investments carry risks, and readers should conduct their own research before making any decisions. CoinoMedia is not responsible for any losses or actions taken based on the information provided.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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