In the last 24 hours, futures associated with leading cryptocurrencies faced more than $840 million in long liquidations as a decline in bitcoin (BTC) triggered significant losses among various tokens, with some dropping almost 14%.
Data from analytics platforms reveals that traders betting on a rise in bitcoin lost over $322 million, while ether (ETH) positions saw nearly $290 million in losses. Smaller altcoins recorded approximately $400 million in liquidations, with futures related to xrp (XRP) and Solana’s SOL experiencing a notable $80 million in total liquidations.
BTC fell below $77,000, marking one of the worst starts to a typically bullish month early in the week, with ether (ETH) plummeting 15% to $1,500.
Cryptocurrencies like SOL, XRP, and dogecoin (DOGE) experienced declines of up to 15% before showing signs of minor recovery in the early hours in Asia. In contrast, BNB Chain’s bnb performed relatively better, with only a 6% drop. This downturn among major tokens was mirrored in mid-cap and smaller cryptocurrencies, all witnessing declines exceeding 10-20%, according to available market data.
Research indicates that nearly 86% of all futures traders had bullish positions, anticipating price increases in the coming weeks based on the belief that current market events were already factored in and that a short-term rebound could be on the horizon.
A liquidation occurs when an exchange forcibly closes a trader’s position due to their failure to uphold margin requirements.
Significant liquidations can signify extreme market conditions, whether characterized by panic selling or buying. A series of forced liquidations may point to a pivotal moment in the market, where a price reversal could be approaching due to an overreaction in trader sentiment.
International stock markets and risk assets like bitcoin suffered declines recently as investors expressed anxieties about the consequences of Trump tariffs, resulting in a roughly 5% drop in U.S. stock index futures as trading resumed after the weekend.
Notably, hedge fund mogul Bill Ackman urged the president to reconsider the economic “nuclear war” and instead halt these aggressive measures.