Over $400 Million in Long Crypto Positions Liquidated in 24 Hours as Bitcoin and Ethereum Face Sharp Downturn

The cryptocurrency market witnessed another turbulent trading session, with more than $400 million in long crypto positions liquidated in the past 24 hours. The wipeout led by declines in Bitcoin (BTC) and Ethereum (ETH) highlights the risks of excessive leverage and volatile sentiment that continue to define the digital asset landscape.

According to data from RootData and derivatives analytics platforms, roughly $286 million in Bitcoin long liquidations and $114 million in Ethereum long positions were erased in a single day. This brings total forced liquidations across the market to over $400 million in 24 hours, making it one of the most significant long-side clearances of the quarter.

Bitcoin and Ethereum Lead $400 Million Long Liquidation Wave

The largest losses came from Bitcoin futures and perpetual contracts, where leveraged traders had been betting on a price rebound. As Bitcoin dipped below the crucial $108,000 level, cascading stop-loss triggers accelerated the liquidation process. Similarly, Ethereum faced steep selling pressure, with prices sliding and causing widespread margin calls.

The crypto liquidation tsunami began when key technical support zones broke, forcing automated sell-offs across major exchanges. Analysts pointed to the surge in over-leveraged Bitcoin and Ethereum long positions as a primary factor that amplified the correction.

On TradingView, market data showed that over $400 million in long positions were liquidated in the last 24 hours, underscoring how swiftly sentiment can reverse in crypto markets. Platforms like Binance, OKX, and Bybit saw the highest number of forced long closures, particularly in BTC, ETH, and SOL futures.

What Triggered the $400 Million Crypto Long Liquidation?

1. Technical Breakdown: The fall below major support zones including Bitcoin’s $108K mark and Ethereum’s $3,100 threshold triggered algorithmic and stop-loss liquidations.
   
   

2. Macro Headwinds: Concerns about potential interest-rate shifts and global liquidity constraints pressured all risk assets, including cryptocurrencies.
   
   

3. Leverage Excess: Traders were heavily positioned in long trades after weeks of upward momentum, making the market vulnerable to a sharp deleveraging.
   
   

4. Cascading Liquidations: As liquidation volumes climbed, automated selling intensified, causing prices to spiral further and triggering additional crypto long position wipeouts.
   
   

This latest $400 million long liquidation event has prompted discussions among analysts about leverage discipline and market maturity.

Market Impact and Outlook

Despite the massive long-side clear-out, analysts believe this purge may help stabilize the market in the medium term. Historically, large-scale Bitcoin and Ethereum long liquidations have often preceded recovery phases, as excessive leverage gets flushed out of the system.

However, short-term volatility is expected to remain elevated. Bitcoin’s dominance in liquidations accounting for more than half of the total indicates that institutional players and retail traders alike are being forced to reassess their exposure.

Solana (SOL), which also saw moderate futures liquidations, demonstrated relative resilience compared to BTC and ETH. Some analysts interpret this as a sign of diversification in trader positioning across different layer-1 ecosystems.

Still, experts caution that while crypto long position liquidations over $400 million may temporarily ease systemic risk, new speculative build-ups can reappear quickly in a fast-moving market.

What Traders Should Watch Next

• Funding Rates and Open Interest: A decline in open interest could indicate reduced leverage and potential market stabilisation.
  
  

• Bitcoin Support Levels: BTC needs to reclaim key price zones near $110K to restore short-term bullish confidence.
  
  

• Institutional ETF Flows: Monitoring Bitcoin ETF inflows can provide insight into whether institutions are buying the dip or staying cautious.
  
  

• Macroeconomic Signals: Interest-rate expectations and liquidity trends remain critical drivers of crypto market sentiment.

FAQs

Q1. What does “$400 million in long positions liquidated” mean?
A1. It means traders who bet on crypto prices rising (longs) were forced to close their positions due to margin shortfalls as prices dropped sharply.

Q2. Which cryptocurrencies were hit hardest by the liquidation wave?
A2. Bitcoin and Ethereum saw the largest long liquidations, accounting for roughly 75% of the total $400 million wiped out in the past 24 hours.

Q3. Why do large crypto liquidations happen so fast?
A3. High leverage, combined with automated trading systems, causes forced sell-offs once margin requirements are breached. This leads to rapid “cascade” effects across exchanges.

Q4. Is this liquidation event a buying opportunity?
A4. Not necessarily. While major liquidations can clear speculative excess, traders should remain cautious and confirm market stability before re-entering leveraged trades.

Q5. What can traders learn from a $400 million long liquidation?
A5. It highlights the dangers of excessive leverage and the importance of risk management. Keeping leverage ratios conservative and using stop-loss orders can mitigate losses in volatile markets.