In the afternoon hours of Asia, Bitcoin dropped more than 3% to trade at $104,700, while Ethereum ETH dropped 8% to $2,530 from $2,531.94.
While XRP XRP$2.15 dropped to $2.20, other tokens such as Solana's SOL SOL$145.66 and Dogecoin DOGE$0.17535 also had declines of more over 8%. More than $834 million in liquidated trades were made by cryptocurrency exchanges Binance and Bybit, more than any other counterparty.
When traders utilize borrowed money to wager on asset values and don't keep enough margin to cover their holdings, liquidations take place.
Then, as a built-in risk feature that frequently causes chain reactions during volatile moves, exchanges forcibly close positions to stop additional losses.