• Bitcoin and Ethereum accounted for the largest liquidations: BTC $277M, ETH $263M.

• Altcoins also faced heavy losses: SOL $38M, DOGE $18.7M, XRP $17.3M.

• Most liquidations were from leveraged longs; the largest single order was a $39.24M BTC-USDT position on HTX.

Crypto liquidations surged to nearly $800M led by Bitcoin and Ethereum — learn causes and risk steps. Read now for data-backed analysis.

What caused the recent crypto liquidation wave?

Crypto liquidations escalated after Bitcoin failed to hold a key psychological level, prompting a cascade of long liquidations across derivatives markets. Concentrated stop-loss triggers and sizable leveraged positions, including a $39.24M BTC-USDT order on HTX, amplified downstream sell pressure within minutes.

Bitcoin and Ethereum carried the bulk of the damage, with BTC accounting for $277 million and ETH trailing close at $263 million.

Source: CoinGlass (data reported in market overviews)

How did altcoins fare during the sell-off?

Altcoins were significantly impacted by spillover selling. Solana (SOL) saw approximately $38 million in liquidations, Dogecoin (DOGE) about $18.7 million, and Ripple (XRP) near $17.3 million. These figures illustrate that market-wide deleveraging, not just BTC moves, drove losses across derivatives markets.

Data showed most liquidations came from over-leveraged longs, with the single largest order (a $39.24 million BTC-USDT position) recorded on HTX.

Did BTC trigger the sell-off?

Bitcoin’s slide below a key psychological level catalyzed the liquidation wave. Charts indicated BTC struggled to hold above the level and bearish momentum dominated the prior week. At the time of reporting, the RSI hovered near 39, suggesting the market was approaching oversold conditions but remained fragile.

Source: TradingView (chart snapshots used for technical context)

How should traders manage liquidation risk?

Reduce leverage, stagger position sizes, and use limit orders to control entry. Maintain stop-loss levels that reflect market volatility, not impulse reactions. Monitor funding rates and exchange concentration to avoid outsized exposure to single counterparties.

Practical steps to lower liquidation probability

• Lower leverage and trim position sizes during high volatility.
• Use diversified entry points and set disciplined stop-losses.
• Track funding rates and on-chain metrics to identify stress early.

Frequently Asked Questions

How much were total liquidations in this event?

Total liquidations were close to $800 million, with BTC at $277M and ETH at $263M, according to CoinGlass market monitoring.

Which exchange saw the largest single liquidation?

The single largest recorded liquidation was a $39.24 million BTC-USDT position reported on HTX. This outsized order contributed to a cascade of stop-loss and margin calls across exchanges.

Are these liquidation events healthy for markets?

Large liquidation events remove excess leverage and can reduce froth, often creating cleaner price discovery afterward. However, they also increase short-term volatility and counterparty risk for leveraged traders.

Key Takeaways

• Major drivers: Over-leveraged longs and a concentrated BTC sell-off amplified liquidations.
• Distribution: BTC $277M and ETH $263M led nearly $800M total liquidations; SOL, DOGE, and XRP also hit.
• Trader action: Reduce leverage, diversify positions, and use disciplined risk management to limit exposure.

Conclusion

Crypto liquidations near $800M underscore the market’s sensitivity to leverage and psychological levels. Bitcoin and Ethereum bore the brunt, while altcoins felt spillover effects. Traders should prioritize risk controls and monitor funding and concentration metrics as markets stabilize. COINOTAG will continue to track updates and provide data-driven analysis.

By COINOTAG — Published: 2025-08-27 — Updated: 2025-08-27

Sources (mentioned as plain text): CoinGlass, TradingView, CoinGecko (comment quoted).