Bitcoin Traders Face $81.94M Liquidation, 900% Short Spike

In the past 24 hours, Bitcoin (BTC) traders experienced a significant liquidation event, with a total of $81.94 million in positions being liquidated. Of this amount, $73.55 million came from long positions, while only $8.39 million came from short positions. This resulted in a 9-to-1 imbalance, representing a 900% spike favoring short positions, marking one of the most extreme lopsided liquidation events in recent times for Bitcoin.

This event was part of a broader trend of liquidations across the crypto space. In total, $209.97 million in positions were liquidated in just one day, affecting over 74,000 traders. Similar to Bitcoin, long positions bore the brunt of the damage, with $167.03 million in long liquidations compared to $42.94 million in short liquidations.

Other major cryptocurrencies were also impacted. Ethereum (ETH) saw liquidations totaling $37.35 million, while Solana (SOL) and XRP experienced liquidations of $9.23 million and $6.23 million, respectively. Although these figures are not unusual on their own, the consistent trend of long liquidations across nearly every major token indicates that the market was overly bullish, and many traders were caught off guard by the sudden downturn.

The 12-hour window leading up to the event showed a similar pattern, with $80.55 million in long liquidations compared to $26.84 million in short liquidations. This suggests a cascade effect that likely began with mild downside movements and quickly accelerated as stop losses and margin calls were triggered.

Ask Aime: "Was the sudden spike in long liquidations for BTC a sign of the market's peak?"

Interestingly, this significant liquidation event occurred without any major price drops. Bitcoin and other top cryptocurrencies experienced dips, but not to the extent that would typically explain such a high level of liquidations. This highlights the complexity of the crypto market, where the positioning behind the moves can often cause more damage than the moves themselves.

According to CoinGlass, the largest single liquidation was from HTX’s ETH/USDT pair, amounting to $2.36 million. It remains uncertain whether this event was a mere reset or an indication of deeper market issues.