A sharp correction in Bitcoin, XRP and Ether triggered $504.62 million in forced liquidations over 24 hours, with longs wiped out at more than 30 times the rate of shorts. The sell-off coincided with a broader risk-off move as investors rotated into Brent crude and gold slipped.
Long positions absorb most of the liquidation wave
Buyers bore the brunt of the sell-off, as excess leverage on exchanges left the market exposed to a sharp correction. According to CoinGlass, longs lost $359.45 million out of $504.62 million in total liquidations, while bears accounted for $145.16 million. Over the past 24 hours, 121,934 traders had their positions forcibly closed.
The imbalance peaked in the final hour of the correction. Buyers' positions were liquidated for $230.24 million in that hour, while sellers lost just $7.31 million, producing an hourly imbalance of 3,049%. The largest single margin call struck on Binance, where a $10.04 million long position in ETHUSDT was liquidated.
Across the full 24-hour period, margin losses totaled $49.16 million for Ethereum and $37.77 million for Bitcoin. Major altcoins were hit as well, with XRP long liquidations reaching $7.68 million.
The liquidation map hints the bottom may not be in
The monthly Cryptocurrency Liquidation Max Pain map shows price pressure could continue, with the nearest liquidity pools sitting below current levels. For Bitcoin, the maximum pain point for longs sits at $79,780, with $118.83 million in potential liquidations, while shorts are concentrated at $87,318, representing $87.05 million.
Ether trades near $2,654, but most leveraged long positions cluster at $2,344, exposing $59.85 million to potential liquidations. XRP, trading at $1.5052, shows a monthly max pain point for buyers at $1.4789, with $11.53 million in liquidations, while shorts sit higher at $1.65978, or $5.47 million.
A risk-off move across global markets
The forced unwinding coincided with a classic risk-off shift across global markets. Bitcoin fell 2.24% to $84,271, while the S&P 500 retreated 0.54% to 7,722.44 and the VIX fear index rose 3.23%.
Safe-haven gold also corrected, falling 1.66% to $4,285.90. Investors instead redirected liquidity into commodities: Brent crude surged above $101 a barrel, up 3.17%, ultimately depriving the overheated digital-asset rally of the support it needed.
Source: U.Today
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