The crypto market is no stranger to volatility, but the past 24 hours have once again highlighted just how ruthless it can be. More than $230 million worth of liquidations occurred in a single day, leaving thousands of traders nursing heavy losses as leveraged positions got wiped out.
According to data from Coinglass, total liquidations surged by a staggering 157% compared to the previous day. In total, over 95,000 traders found their positions forcibly closed as prices dipped, erasing billions from market value. At the time of reporting, the cumulative liquidation figure sat at $232 million, with the largest single liquidation order recorded on Binance—a massive ETH/USDT position valued at $5.59 million.
The broader crypto market currently holds a capitalization of around $2.8 trillion, with Bitcoin still dominating at 58.9%. However, despite this overall strength, recent price movements have blindsided many traders who bet heavily on bullish momentum. Much of the liquidated positions were long trades, underscoring the perils of excessive leverage in unpredictable conditions.
Bitcoin and Ethereum bore the brunt of the sell-off. Coinglass data shows Bitcoin accounted for over $73 million in liquidations, while Ethereum followed with nearly $44 million. XRP and Solana were not spared either, registering significant liquidations as traders scrambled to manage their losses.
A key factor contributing to the liquidation frenzy appears to be overly aggressive leverage strategies. One notable case involved a whale who reportedly took a massive 40x short position on Bitcoin, with a liquidation threshold north of $86,000. Currently, Bitcoin is hovering around $83,316, putting that position dangerously close to getting wiped out.
Crypto analyst Ash Crypto weighed in on the situation, pointing out how external announcements could dramatically impact the market and exacerbate liquidation risks. “If Saylor announces that he is buying $2 billion Bitcoin soon or even hints it, $380 million 40x short whale will get liquidated in a single candle,” he shared on X, referencing MicroStrategy founder Michael Saylor’s known strategy of accumulating Bitcoin.
Other analysts echoed similar sentiments, warning that sudden moves, either by whales or influential figures, could swiftly swing market conditions and force additional liquidations.
Leading exchanges such as Bybit, Binance, and OKX have reported the bulk of the liquidations during this turbulent period. The wipeout serves as a stark reminder of the dangers inherent in leveraged trading. While leverage amplifies potential gains, it also magnifies losses—and in crypto’s notoriously volatile landscape, fortunes can be erased in mere minutes.
As bulls attempt to regain control and stem the bleeding, traders will likely be reevaluating their risk exposure. The market has once again made it clear: leverage can be a double-edged sword, and in times like these, it cuts deep.
By Alejandro Silva Ramírez, Crypto Analys & Columnist