Crypto Markets Face $979.72M Liquidation Event, Bitcoin Drops 2.2%

In the past 24 hours, the crypto markets experienced a significant liquidation event, totaling $979.72 million, with long positions being the most affected. This marked the largest liquidation event since February, when nearly $3 billion in both long and short positions were liquidated within 48 hours. The breakdown of the liquidations showed that $873.05 million in long positions were liquidated, accounting for approximately 89.12% of the total, while $106.67 million in short positions were liquidated, making up about 10.88% of the total. This imbalance in liquidations reflects a sharp market reversal that caught many leveraged long traders off guard, following a public spat between Elon Musk and Donald Trump.

Bitcoin (BTC) and Ethereum (ETH) were the top assets by liquidation volume, with $344.42 million and $285.06 million liquidated, respectively. Together, they accounted for 64% of the total liquidations, indicating high leverage activity around these major cryptocurrencies. Solana (SOL) and Dogecoin (DOGE) also saw significant liquidation volumes relative to their market capitalization, suggesting overleveraged retail enthusiasm. XRP had $22.73 million in liquidations, adding to the overall market turmoil.

Liquidations were concentrated on a few key platforms. Bybit led with $350.95 million in liquidations, showing an extreme 94.13% long bias. This underscores the platform's user base's heavy bullish leverage, which likely cascaded into one of the largest long squeezes on the platform. Binance followed with $246.80 million in liquidations, with 83.08% being long positions. Gate had $115.18 million in liquidations, with 93.07% being long, and OKX had $95.47 million in liquidations, with 83.01% being long.

The liquidation data suggests a classic long squeeze, likely triggered by a rapid price drop in BTC or ETH. This may have been exacerbated by aggressive leverage in altcoin trades, stop-loss triggers during the personality-driven correction, and the unwinding of bullish derivatives structures ahead of the weekend. Given the scale of liquidations, short-term volatility is likely to remain elevated, with reduced open interest and cooling funding rates. Any retracement rallies may be weaker as sidelined longs reassess new personality risks. If BTC or ETH stabilizes, a short-term bounce is plausible, but sustained upside will require clear support and renewed confidence post-wipeout.

As of the latest update, Bitcoin is trading 2.2% lower than yesterday’s peak of $105,500, currently at $103,400. This liquidation event highlights the risks associated with high leverage in the crypto markets and the potential for significant price movements in response to market sentiment and external events.