Bitcoin News Today: Massive $332M Crypto Liquidations Hit BTC and ETH Longs in 4-Hour Volatility Spike

In a dramatic four-hour span, the cryptocurrency market experienced a total of $332 million in liquidations, primarily targeting long positions in Bitcoin (BTC) and Ethereum (ETH). This sudden market shift caused substantial volatility, especially on major exchanges like Binance, where traders witnessed significant price swings and capital reallocations. The event reflects ongoing profit-taking and large-scale capital rotation by whale investors, contributing to heightened market instability [1].

Bitcoin was the most affected asset, with $140.06 million in liquidated long positions, followed by Ethereum, which saw $104.76 million in similar losses. These figures point to a broad-based market reaction, with over 213,000 individual traders impacted. The sharp sell-off highlights the risks associated with leveraged positions in the crypto space, particularly during periods of heightened volatility [2].

According to the CryptoQuant team, the event represents the third major profit-taking phase in the 2023–2025 bull cycle. Analysts have noted that daily realized gains during the previous months reached between $6 billion to $8 billion, indicating strong capital inflows into the sector before this recent correction. Such patterns are not uncommon during bull markets, where large institutional players and whales often unwind leveraged positions to lock in gains [3].

Historical data shows that similar liquidation events have often triggered cascading effects across the broader cryptocurrency ecosystem. In the past, large-scale exits from leveraged positions by whales and institutions have led to significant drawdowns, particularly for BTC and ETH. This current event is expected to draw regulatory attention, as recurring volatility can raise concerns over market stability and investor protection [1].

Market analysts suggest that monitoring historical monetary trends and exchange activities could offer valuable insights into future market behaviors. Given the interconnected nature of the crypto market, large-scale liquidations are likely to influence investor sentiment and asset price movements for the foreseeable future [2].

Source:

[1] [https://coinmarketcap.com/community/articles/688e5ca3db321a7286e31304/](https://coinmarketcap.com/community/articles/688e5ca3db321a7286e31304/)