Bitcoin News Today: Hyperliquid's $21M Liquidation Exposes Leverage Risks in Volatile Crypto Markets

Cryptocurrency markets experienced a volatile 24-hour period, with global liquidations surging to $1.134 billion as Bitcoin (BTC-USD) trading dominated position closures. According to Coinglass data, long positions accounted for $974 million of the total, while short liquidations amounted to $159 million, reflecting heightened risk exposure among leveraged traders, as reported by a Coinotag report. The largest single liquidation event occurred on Hyperliquid, a decentralized exchange platform, where a BTC-USD trade was closed for $21.43 million, underscoring the platform's growing role in high-volume futures trading during market turbulence.

The selloff coincided with Federal Reserve Chair Jerome Powell's cautionary remarks against aggressive bets on further rate cuts, which tempered investor optimism. Powell's comments followed the Fed's recent 25-basis-point rate reduction to 3.75%-4%, but his warning against a "series of further cuts" triggered renewed selling in crypto markets, according to a Seeking Alpha report. Market volatility intensified after U.S. President Donald Trump's meeting with Chinese President Xi Jinping, during which Trump announced a trade deal to halve fentanyl-related tariffs on Chinese goods. While the announcement was initially described as "amazing," the report said it accelerated short-term price declines before losses stabilized.

Hyperliquid's $21.43 million liquidation highlighted the fragility of leveraged positions in BTC-USD, which remains the most actively traded pair. The exchange recorded the highest total liquidations at $282 million during the period, outpacing Bybit ($223 million) and Binance ($144 million), the report found. Meanwhile, Bitcoin's price movements triggered broader deleveraging, with open interest in futures markets dropping to $73 billion from a monthly high of $94 billion. This decline coincided with $470 million in outflows from spot Bitcoin ETFs, led by Fidelity's FBTC and Ark Invest's ARKB, as investors retreated amid technical headwinds, according to a Crypto.news article.

Technical indicators further signaled bearish momentum. Bitcoin's price near $110,000 approached a "death cross" pattern, where the 50-day and 200-day moving averages converge-a potential precursor to extended declines. On Hyperliquid, on-chain data revealed $22 million in long positions at risk if the HYPE token, the platform's native token, falls to $46, according to an FXStreet forecast. However, futures open interest for HYPE increased by 9.11% in 24 hours, suggesting lingering retail demand amid uncertainty.

The liquidation surge underscores the risks of leveraged trading in crypto markets, where rapid price swings can trigger cascading closures. As investors navigate macroeconomic uncertainties and technical breakdowns, platforms like Hyperliquid are becoming focal points for volatility, amplifying the need for disciplined risk management.