TLDR
- Crypto markets experienced $657 million in liquidations within a 24-hour period
- Long position holders absorbed 89% of losses, totaling $584 million in liquidated trades
- Ethereum suffered the highest losses at $256 million, with Bitcoin recording $180 million
- Bitcoin’s price fell beneath the $77K threshold, marking a 5.59% weekly decline
- Geopolitical tensions escalated after Trump signaled potential military action against Iran
The cryptocurrency sector faced severe turbulence in the last 24 hours, with liquidations exceeding $657 million across global exchanges. Traders holding long positions were hit hardest by the downturn.
Data compiled by Coinglass reveals that 106,371 trading accounts were forcibly closed in a single trading session. The majority of these liquidations—$584 million—came from long positions, while short positions only accounted for $73 million in losses. This disparity highlights a brutal squeeze on leveraged bulls betting on continued price appreciation.
ETH and BTC Dominate Liquidation Figures
Ethereum bore the heaviest blow among individual cryptocurrencies, recording $256 million in liquidated long positions. Bitcoin wasn’t far behind, posting $180 million in forced closures. Combined, these two leading digital assets represented approximately two-thirds of the day’s aggregate liquidation volume.
The single largest liquidation event involved an ETH/USDT perpetual futures contract on Bitget valued at $28.49 million.
Bitcoin had been struggling to overcome resistance between $79K and $80K in recent sessions. When the asset failed to break through this ceiling and subsequently dropped below $77K, it triggered a cascade of automatic liquidations across multiple trading platforms.
Within a single 60-minute window, approximately $526 million in leveraged positions were forcibly closed. Some market analysts estimate that total long liquidations throughout the weekend may have surpassed $800 million.
Bitcoin currently shows a 5.59% decline over the past seven days. Ethereum slipped below $2,120, registering nearly a 10% weekly loss. Solana experienced an 11.22% drop during the same timeframe, trading at $84.94.
The aggregate cryptocurrency market capitalization decreased by 0.93%, settling around $2.65 trillion.
Geopolitical Tensions Amplify Market Stress
The market downturn coincided with heightened geopolitical uncertainty. President Donald Trump indicated that the United States might conduct military operations against Iran, prompting investors to shift toward safer assets and exit riskier positions heading into the new trading week.
Reports suggest Trump plans to convene a Situation Room meeting on Tuesday to evaluate military response options. Should tensions between the US and Iran intensify, additional volatility in leveraged cryptocurrency markets appears likely.
Understanding the Market Dynamics
Prior to this correction, Bitcoin had enjoyed nine consecutive days of positive ETF inflows, accumulating approximately $2.12 billion in fresh capital. Such sustained buying activity typically encourages leveraged traders to establish long positions, anticipating the uptrend will persist.
Spot Bitcoin ETF investors generally operate without leverage. The $2.12 billion influx represents genuine capital allocation rather than speculative leveraged bets. However, momentum-chasing leveraged traders who followed this trend found themselves exposed when prices reversed course.
Critical support for Bitcoin now rests between $75K and $77K. Bulls must defend this range to prevent further deterioration. A reclaim of the $79K to $80K resistance zone will be essential for restoring positive momentum.
Market participants will closely monitor ETF flow data in upcoming sessions. The nine-day streak of positive inflows provided the foundation for the recent rally, and the direction of these flows moving forward could determine the market’s near-term trajectory.
