Macro Uncertainty and Fed Signals Drive $1.5B Crypto Liquidation Wave

Over $1.5 billion in liquidations were triggered as Ethereum (ETH) fell below $4,000, marking the largest single-day losses since late 2024. According to Coinglass data, ETH dropped 9% to $4,075, with nearly half a billion dollars of leveraged long positions wiped out as traders faced margin calls. Bitcoin (BTC) also slid 3% to $111,998, though it recovered slightly by midday. The 24-hour liquidation event affected over 407,000 traders, reflecting extreme market stress and leveraged positioning across altcoins like Dogecoin (DOGE), Solana (SOL), and Cardano (ADA), which fell by 10%–5% respectively Ether (ETH), Dogecoin (DOGE) Lead $1.5B Liquidation Wipeout as …^[2].

The decline was exacerbated by panic selling from large holders. Whale addresses, including 0x3c9E, liquidated 1,000 ETH for $4.19 million, compounding losses as the price dropped. Another whale, 0x09D4, dumped 56,569 HYPE tokens at a $103,000 loss, while BV2gzZ sold 307 million PUMP tokens for a $582,000 loss. These actions underscored a broader trend of leveraged positions collapsing under margin pressure, with smaller traders disproportionately impacted Pump Coin Leveraged Bet: Machi Big Brother Faces $6.16 Million …^[4].

Market analysts highlighted the role of macroeconomic uncertainty in amplifying volatility. Nassar Achkar, chief strategy officer at CoinW, noted that the Federal Reserve’s recent rate cut failed to stabilize sentiment, leaving markets vulnerable to cascading liquidations. “The trajectory of crypto hinges on upcoming economic data and Fed signals,” he said, adding that defensive positioning in derivatives markets suggests prolonged risk-off behavior. Investors are now closely monitoring U.S. PMI data and jobless claims for clues about the central bank’s future policy stance Ether (ETH), Dogecoin (DOGE) Lead $1.5B Liquidation Wipeout as …^[2].

The liquidation wave also exposed vulnerabilities in high-leverage tokens. PUMP, a Solana-based meme coin, saw its price fall 46.5% from its all-time high as private investors dumped tokens to lock in profits. Machi Big Brother, a prominent crypto influencer, faced a $6.16 million loss on his 5x leveraged PUMP position, while celebrity-backed projects like Aster (ASTER) lost 30% after MrBeast’s endorsement failed to offset broader market weakness PUMP dips another 20%, leaving crypto influencer with …^[5].

Derivatives traders are now using liquidation heatmaps to identify reversal zones and optimize risk management. These tools, which highlight concentrated leverage in red (shorts) and green (longs), have become critical for spotting overcrowded trades. For example, ETH’s $4,000 level emerged as a key liquidation hotspot, with dark red zones indicating heavy short liquidations that could signal a potential rebound. However, analysts caution that without a clear catalyst for bullish momentum, altcoins may remain capped as Bitcoin’s dominance rises Ether (ETH), Dogecoin (DOGE) Lead $1.5B Liquidation Wipeout as …^[2].