-
Crypto markets face intense pressure as long position liquidations surge, with Bitcoin, Ethereum, Dogecoin, and Solana leading losses on Thursday.
-
Over $320 million in long bets were wiped out within a single hour, reflecting heightened volatility and investor caution amid recent price declines.
-
According to CoinGlass data, a notable $201 million long position on Binance was liquidated, underscoring the scale of market adjustments underway.
Crypto long liquidations spike over $320M as Bitcoin, Ethereum, and altcoins fall sharply, signaling increased market volatility and investor risk exposure.
Bitcoin and Ethereum Lead Massive Long Liquidations Amid Market Downturn
The cryptocurrency market experienced a significant correction on Thursday, with Bitcoin (BTC) and Ethereum (ETH) at the forefront of liquidations. Bitcoin alone accounted for approximately $317 million in liquidations over the past 24 hours, with $306 million stemming from long positions. This sell-off pushed BTC prices below $106,200, marking a nearly 3% decline in a single day. Despite this drop, Bitcoin remains about 5% below its all-time high of $111,814 recorded in May, maintaining a modest weekly gain of around 5%.
Ethereum’s decline was even more pronounced, with daily liquidations totaling $151 million. ETH’s price fell over 6% to approximately $2,650, although it retains a 9% increase over the past week due to earlier gains. The scale of these liquidations highlights the vulnerability of leveraged positions during sharp market movements and reflects a broader risk-off sentiment among traders.
Altcoins Experience Accelerated Losses as Market Sentiment Shifts
Beyond Bitcoin and Ethereum, altcoins such as Solana (SOL), XRP, and Dogecoin (DOGE) also faced significant liquidations. Solana dropped over 6% to $152.80, XRP declined by more than 4% to $2.20, and Dogecoin, the largest loser among the top ten cryptocurrencies, fell 7% to $0.181. These losses were exacerbated by earlier declines preceding the broader market sell-off, indicating a widespread reassessment of risk across various crypto assets.
The sell-off followed the release of the U.S. Consumer Price Index (CPI) report, which showed slowing inflation in May. This data prompted some investors to take profits, leading to a “sell the news” reaction that intensified downward pressure on prices. The correlation between macroeconomic indicators and crypto market performance continues to be a critical factor influencing investor behavior.
Market-Wide Impact and Future Outlook for Crypto Traders
Overall, the cryptocurrency market declined approximately 5% within 24 hours, according to CoinGecko data. The rapid liquidation of long positions—totaling over $713 million in the last day—reflects heightened volatility and the risks associated with leveraged trading. Traders are advised to exercise caution and consider risk management strategies amid these turbulent conditions.
As the market digests recent economic data and adjusts to evolving investor sentiment, monitoring liquidation trends and price movements will be essential for anticipating potential recovery or further declines. Staying informed through reliable data sources like CoinGlass and CoinGecko can provide valuable insights for navigating this dynamic environment.
Conclusion
The recent surge in long position liquidations across major cryptocurrencies highlights the ongoing volatility and sensitivity of the crypto market to macroeconomic developments. Bitcoin and Ethereum remain central to these movements, with altcoins following suit in the downward trend. Investors should remain vigilant, employing prudent risk management and staying updated on market indicators to navigate the current landscape effectively.
