Over $1.1 billion liquidated in 24 hours: The crypto market experiences one of the largest leverage sweeps of the year
Latest data shows the crypto market recorded over $1.11 billion in liquidated positions in 24H. This is one of the largest liquidation events in recent months.
Longs took the biggest hit, suffering around $913 million, while shorts only accounted for about $192 million. This indicates that a majority of investors still expect a market recovery before a sharp drop in prices.
🔷BTC and ETH lead the leverage sweep
BTC was hit the hardest with nearly $483 million in liquidated positions, followed by $ETH with over $273 million.
In addition to the two major coins, many altcoins also recorded significant liquidation amounts, reflecting widespread selling pressure across the market.
The loss of key support levels by $BTC triggered a cascade of stop-loss orders and automatic liquidations, creating a domino effect that increased volatility.
🔶What’s happening after the liquidation?
Despite the large scale, "leverage sweeps" often help eliminate overheated positions and bring the market back to a healthier state.
As the majority of high-leverage long positions get wiped out, the forced selling pressure from exchanges will gradually subside. This could help the market find a new equilibrium in the short term.
From derivative data, the liquidation of over $1 billion indicates that the previously accumulated leverage was at excessively high levels. This is not necessarily a long-term negative signal, but a reminder that price increases lacking support from spot market liquidity often lead to sharp corrections.
Latest data shows the crypto market recorded over $1.11 billion in liquidated positions in 24H. This is one of the largest liquidation events in recent months.
Longs took the biggest hit, suffering around $913 million, while shorts only accounted for about $192 million. This indicates that a majority of investors still expect a market recovery before a sharp drop in prices.
🔷BTC and ETH lead the leverage sweep
BTC was hit the hardest with nearly $483 million in liquidated positions, followed by $ETH with over $273 million.
In addition to the two major coins, many altcoins also recorded significant liquidation amounts, reflecting widespread selling pressure across the market.
The loss of key support levels by $BTC triggered a cascade of stop-loss orders and automatic liquidations, creating a domino effect that increased volatility.
🔶What’s happening after the liquidation?
Despite the large scale, "leverage sweeps" often help eliminate overheated positions and bring the market back to a healthier state.
As the majority of high-leverage long positions get wiped out, the forced selling pressure from exchanges will gradually subside. This could help the market find a new equilibrium in the short term.
From derivative data, the liquidation of over $1 billion indicates that the previously accumulated leverage was at excessively high levels. This is not necessarily a long-term negative signal, but a reminder that price increases lacking support from spot market liquidity often lead to sharp corrections.