Crypto Liquidations Top $500 Million as Bitcoin, Ethereum and XRP Sink Into the Weekend
Over the weekend, cryptocurrencies faced a sharp downturn: Bitcoin dropped to around $108,600, while Ethereum fell ~6% and XRP also slid over 6%, triggered by hawkish inflation data and cooling momentum after recent highs. In this downturn, more than $535 million in leveraged positions were liquidated across the market, with long positions bearing the brunt of the sell-off. (Source: Decrypt)
This episode underscores heightened market sensitivity: when macroeconomic data disappoints—particularly inflation in this case—crypto markets can swiftly reverse, especially when traders are overleveraged.
Expanded Market Insight:
Liquidation Breakdown
Around $552 million were liquidated in total over 24 hours, split between roughly $483 million in long positions and $69 million in shorts, reflecting a clear unwind of bullish bets.
Macro Pressures amid Market Fragility
The sell-off coincided with a spike in U.S. core inflation, cooling expectations around Federal Reserve rate cuts. This eroded risk appetite and led to the liquidation wave.
September Risks Loom
Analysts cautioned that September is typically a weak month for crypto markets, and this strong volatility trend may continue if macro conditions don't ease.
Factor Impact:
Price Drop
BTC ~–4%,
ETH ~–6%,
XRP ~–6%
Liquidations ~$535–552M wiped out; majority were long positions
Macroeconomic Trigger Hot inflation data dampened rate-cut optimism
Forward Risk September typically volatile; serious risk if macro pressures persist