Crypto Market Sees Massive Liquidation of Long Positions

By: Eva Baxter

The cryptocurrency market witnessed a significant liquidation event, with over $646 million being wiped off across various digital assets in a span of just 24 hours. This drastic market downturn occurred as Bitcoin's price dropped below $116,000, sparking a cascade of liquidations primarily affecting long positions. The rapid depreciation of Bitcoin and other major cryptocurrencies signifies a noteworthy shift in market dynamics, urging investors to exercise caution.

According to CoinGlass data, long positions were predominantly hit, accounting for approximately $492.6 million of the total liquidations, representing 76.2%. The primary catalyst for this event was Bitcoin, which experienced a downtrend from $117,786 to $115,353, a 2.1% drop that stoked further liquidations. Notably, Bitcoin accounted for $140.06 million of the total liquidated positions, reflecting the steep impact of leverage in crypto markets. The balance was made up of shorts, absorbing around $154.4 million.

Ethereum, another significant player in the crypto market, mirrored Bitcoin's trend with notable long liquidation figures. Over $91.1 million in Ethereum longs were liquidated as its price slid to around $3,598. Other cryptocurrencies like Solana and XRP also experienced substantial losses, shedding millions in long exposure even as their market percentages shifted slightly.

The extensive liquidations were predominantly centered at major exchanges, with Binance leading the pack, documenting net liquidations worth $232.9 million, 75% of which involved long positions. Following it were Bybit and OKX, contributing to a cumulative 80% of total exits across the market. These substantial liquidations also affected market stability, albeit briefly, as Bitcoin managed to stabilize just above $115,000. This occurrence highlights the inherent volatility within the digital asset market, signaling potential overleveraging within the community.