The crypto market faced a brutal sell-off, wiping out nearly $900 million in bullish leveraged positions within 24 hours as Ether (ETH), Dogecoin (DOGE), and Bitcoin (BTC) tumbled sharply.
According to data from derivatives trackers, the sudden market plunge liquidated thousands of long positions, underscoring the risks of excessive leverage during periods of volatility. Bitcoin, which had been holding above key support levels, slid below $62,000, while Ether dropped under $2,600. Dogecoin, which had recently been riding a wave of retail optimism, lost more than 12% in a single day.
Analysts point to a mix of factors fueling the downturn: ongoing macroeconomic uncertainty, hawkish remarks from Federal Reserve officials, and waning liquidity in crypto markets. The surge in liquidations highlights how leveraged traders — particularly those betting on continued price gains — were caught off guard by the swift reversal.
“This is a textbook flush-out,” one derivatives analyst noted. “Excessive leverage had been building across BTC and ETH futures, and when prices cracked key levels, it triggered a cascade of margin calls and forced selling.”
Despite the carnage, some traders see opportunity. Historically, mass liquidations can clear out overheated speculative activity, paving the way for a more stable base and potential recovery. Still, with volatility high and sentiment shaken, short-term caution dominates the market mood.
As Bitcoin, Ether, and Dogecoin attempt to stabilize, investors will be closely watching whether buyers step in to absorb the dip — or if further downside awaits.
