Crypto Market Recovers After #Brutal 48-Hour #Liquidation Wave — What Traders Need to Know

Crypto Market Endures Massive 48-Hour Liquidation; Signs of Stabilization Emerge

The cryptocurrency market recently experienced a fierce 48-hour liquidation event, sparking sharp price declines and significant drops in Open Interest for Bitcoin ($BTC ) and Ethereum ($ETH ). This rapid correction was driven by a mix of panic selling, forced leveraged liquidations, and a dramatic shift in trader sentiment, shaking up weeks of gradual accumulation.

However, with Funding Rates bouncing back and prices stabilizing near key support levels, early signals suggest that the worst of the market shakeout may be behind us.

Back-to-Back Shakeouts as #Bitcoin and #Ethereum Prices Slide Sharply

Over the last two days, both Ethereum and Bitcoin suffered severe capital outflows from their futures markets. Ethereum’s Open Interest plummeted by nearly $10 billion, while Bitcoin’s dropped by over $5 billion, according to data from CoinGlass.

These drastic reductions wiped out several weeks’ worth of steady futures accumulation, marking a significant reversal in market positioning. The rapid unwind was triggered by cascading liquidations — forced sales of leveraged positions — compounded by panic-driven exits from traders looking to limit losses.