Crypto longs face $361m wipeout as leverage bites
The cryptocurrency derivatives market endured another sharp shakeout after more than US$361 million worth of long positions were liquidated within a 24-hour period.
Data from Coinglass showed that total liquidations across the digital asset sector reached roughly US$456 million during the same timeframe.
Traders betting on higher prices absorbed the overwhelming majority of losses, with long positions accounting for approximately US$366 million of all forced closures.
The figures indicate that close to 80% of liquidated trades came from market participants expecting further upside in cryptocurrency prices.
The latest sell-off highlighted the risks associated with leveraged trading, where even modest market moves can trigger automatic position closures.
Most of the liquidations occurred within perpetual futures markets, which remain one of the most actively traded segments of the crypto ecosystem.
Bitcoin and Ethereum contracts represented a significant share of the affected positions due to their dominant role in global crypto derivatives trading.
Bitcoin spent much of the period trading near key technical support zones below US$64,000 and US$62,000, increasing pressure on leveraged traders.
Market volatility around these levels created conditions where liquidation orders accelerated downward price movements.
As positions were automatically closed, additional selling pressure entered the market and intensified the broader decline.
The resulting chain reaction created a liquidation cascade that forced more traders out of their positions as prices continued to weaken.
Industry data suggested that between 100,000 and 200,000 traders were affected during several volatile trading sessions throughout June.
The latest losses follow an already difficult month for bullish crypto investors and traders.
Earlier in June, the market experienced a much larger deleveraging event when liquidations surpassed US$1.5 billion over a single day.
That earlier episode occurred after Bitcoin dropped beneath the US$62,000 level and triggered widespread forced selling across exchanges.
Repeated liquidation events have demonstrated how quickly sentiment can shift in highly leveraged cryptocurrency markets.
Analysts note that liquidation data has become an important tool for traders seeking to identify areas of market stress.
Metrics such as open interest, funding rates and liquidation clusters can offer clues about where future volatility may emerge.
Monitoring these indicators helps investors understand whether excessive leverage is building within the market.
The latest US$361 million wipeout serves as another reminder that leverage can amplify gains during rallies but can also magnify losses when prices move in the opposite direction.
With hundreds of millions of dollars disappearing from positions in a matter of hours, risk management remains a critical factor for participants in the crypto derivatives sector.
At the time of reporting, Bitcoin price was $62,743.18.