Crypto liquidations hit $967M in 24 hours
- Cryptocurrency derivatives markets recorded US$967 million in liquidations over 24 hours, with long positions accounting for US$849 million.
- Ethereum (CRYPTO:ETH) led losses with US$309 million in liquidations, followed by Bitcoin (CRYPTO:BTC) at US$246 million.
- Market analysts said the deleveraging event could reduce the risk of further forced selling if leverage remains subdued.
Cryptocurrency derivatives markets recorded US$967 million in liquidations during the past 24 hours, as a sharp market decline triggered widespread forced closures of leveraged trading positions.
Long traders absorbed most of the losses, accounting for approximately US$849 million, or 88% of all liquidations, highlighting the extent of bullish positioning before the sell-off.
“This kind of deleveraging can reset market positioning and reduce the immediate risk of further cascading declines,” said on-chain analytics provider Glassnode.
Ethereum (CRYPTO:ETH) recorded the largest liquidation total at US$309 million, while Bitcoin (CRYPTO:BTC) followed with US$246 million as prices across the digital asset market moved lower.
Bitcoin traded near US$109,200 after falling more than 6% over the previous week, and following the liquidation event traders shifted their attention to whether leveraged activity would return to derivatives markets.
Liquidations occur when exchanges automatically close positions that no longer meet margin requirements, a process that has become common in crypto markets where leverage of 50 times or more is widely available.
Market participants are now monitoring open interest, which measures the total value of active derivatives contracts, to determine whether traders rebuild leverage quickly or maintain a more cautious approach following the sell-off.
At the time of reporting, Ethereum price was $1,622.46.
