Massive Selloff Hits Crypto Market
The cryptocurrency market was hit with $1.7 billion in liquidations over the past 24 hours, according to data from Coinglass. The sharp market move came as Bitcoin price fell 2.5% to $112,890, while Ethereum price dropped 6.2% to $4,196.
Long Positions Take the Biggest Hit
Of the total liquidations, around $1.62 billion came from long positions, signaling a strong wave of forced selling. In just the past four hours, roughly $1.09 billion was liquidated, including $1.06 billion in longs.
More than 404,000 traders were liquidated during this period, with the largest single order being a $12.74 million BTC-USDT swap on OKX.
What Liquidations Mean for Traders
Liquidations occur when a trader’s leveraged positions are forcibly closed due to losses or insufficient collateral. This helps exchanges limit further risk but often accelerates price swings during volatile periods.
It’s worth noting that data from aggregators like Coinglass may understate the true extent of market liquidations due to API limits and incomplete reporting, meaning actual losses could be even higher.
Bitcoin and Ethereum Lead Market Drop
The selloff pushed Bitcoin under $113,000 and Ethereum below $4,200, triggering a cascade of liquidations across major exchanges. Analysts say the latest dip may indicate that the crypto bull cycle is losing momentum, despite earlier optimism around the Federal Reserve’s interest rate decision expected in September.
