- Over $1.8 billion liquidated in 24 hours
- Long positions account for $1.65 billion of the losses
- Market volatility continues to shake trader confidence
The crypto market has just witnessed one of its most intense shakeouts of the year. In the last 24 hours alone, more than $1.8 billion in crypto positions were liquidated, with long traders taking the brunt of the damage. According to on-chain data, $1.65 billion of the total liquidations came from long positions, meaning most traders were betting on the market to go up — and lost.
This sharp liquidation wave signals a violent shift in sentiment, catching many off guard. These mass liquidations typically occur when price movements quickly go against the majority of leveraged positions, triggering automatic sell-offs and compounding losses.
What Caused the Massive Liquidations?
While the exact catalyst remains unclear, analysts suggest a mix of negative macroeconomic sentiment, high leverage, and weak market structure played a key role. With traders heavily leaning bullish, the sudden drop in prices forced major sell-offs across exchanges.
Bitcoin and Ethereum , the two largest cryptocurrencies by market cap, saw some of the biggest liquidations. Other altcoins followed closely, as fear spread rapidly. This kind of liquidation event often creates a feedback loop — as prices fall, more positions are forced to close, which pushes prices even lower.
Volatility Continues to Dominate the Market
This liquidation event is a stark reminder of the risks associated with leveraged trading. While high volatility in the crypto market offers opportunity, it also exposes traders to significant downside when positions are over-leveraged.
For now, crypto investors are being urged to exercise caution. With uncertainty still looming, it remains to be seen whether this shakeout will be followed by a recovery or further downside.
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