Altcoin futures on Binance faced $900M CLD wipeouts as shorts outpaced BTC during the 2024–2025 bull run, highlighting overleveraged risk.
Despite BTC’s 175% rally to $110K, its CLD stayed negative, with bullish liquidations revealing structural fragility in derivative markets.
Binance's altcoin liquidations totaled $7.4B, with euphoric leverage fueling both long and short wipeouts during high-volatility phases.
BTC’s sustained rally since early 2024 has exposed a sharp imbalance in liquidation patterns between Bitcoin and altcoins. Altcoin futures on Binance have seen persistent overleveraged long and short wipeouts, with altcoins facing more aggressive liquidation activity than Bitcoin despite similar macro conditions.
https://twitter.com/cryptoquant_com/status/1928470588193943580
According to the above report by CryptoQuant, “Altcoin liquidations have consistently surpassed Bitcoin’s,” as Binance’s futures markets endured sharp wipeouts in both directions from January 2024 through May 2025. The Binance Cumulative Liquidation Delta (CLD) for altcoins surged over $900 million during the BTC bull run, indicating a structural imbalance rooted in overexposed short-side trades.
While BTC’s CLD stayed deeply negative, hovering near -$360 million despite crossing $110K, the altcoin CLD painted a different picture, driven by cascading short liquidations during bullish phases. CryptoQuant’s bar and shaded-area visuals confirmed that while BTC bulls were flushed out, altcoin shorts were the primary casualty of price discovery across the same timeline.
Altcoin Futures Reveal Lopsided Risk on Both Sides
In an analysis of TOTAL 2 by CryptoDona, altcoins reclaimed key support above $1,117, with strong volume and demand pushing the market toward bullish continuation. She identified $950–$1,000 as a critical demand zone and $850–$950 as a “Hold above here” area, framing $750 as the risk-off threshold where “Sell everything” levels historically emerge.
This technical breakout aligned with CLD trends: altcoin futures absorbed over $3.8 billion in long liquidations and $3.6 billion in shorts by May 2025. The near-$200M delta in favor of long wipeouts during BTC’s Q2 surge suggests leveraged long positioning became increasingly fragile, reflecting euphoria-driven overexposure.
BTC Liquidation Delta Confirms Bull Market Imbalance
Despite Bitcoin’s 175% rise from $40K to over $110K, its CLD never reversed into positive territory. Each leg of the rally, from March 2024 to May 2025, was met with deeper long-side liquidations, illustrating a counterintuitive dynamic where bulls faced liquidation despite winning directional bets.
The persistent red bars and negative CLD spikes show BTC’s bullish moves were driven partly by liquidated longs, revealing the market’s derivative fragility. Meanwhile, short liquidations remained isolated and minimal, further emphasizing the asymmetry in futures positioning.
Binance Derivatives Highlight Amplified Altcoin Leverage
Binance’s cumulative altcoin liquidation chart displayed over $7.4 billion in total liquidations across both long and short positions. From Q4 2024 onward, long liquidations accelerated more steeply, particularly during April’s BTC breakout above $100K, exposing how quickly altcoin traders overcommitted to bullish leverage.
Even during short-squeeze-heavy periods from March to October 2024, the sustained imbalance favored long-side risk. Liquidation pressure never reset, and speculative activity remained elevated, with daily liquidation bars clustered tightly near zero, confirming persistent volatility.
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