Crypto Bloodbath: $200M in Long Positions Liquidated as Altcoins Tumble

The cryptocurrency market experienced a significant shakeup this week, with over $200 million in long positions liquidated as altcoins tumbled. The market was rattled by a massive wave of liquidations, wiping out overleveraged traders, particularly those holding altcoins like Ethereum and Solana.

Recent data shows that the past 24 hours saw $268 million in total liquidations, with a staggering $217 million coming from long positions. Liquidations occur when traders using leverage are forced to close their positions due to losses exceeding their margin. The combination of heightened leverage and increased volatility created the perfect storm for a liquidation squeeze.

Over the past hour alone, the market saw $3.76 million in liquidations. Of this, $1.03 million came from long positions and $2.72 million from shorts. In the four-hour window, liquidations climbed to $51.58 million, with $43.81 million coming from longs. The past 12 hours were even more brutal, with total liquidations hitting $196.20 million, of which $173.68 million were long positions. The 24-hour window saw the most significant wipeout, with total liquidations standing at $268.26 million, including $217.20 million in long positions and $51.06 million in shorts.

While Bitcoin usually takes the lead in liquidations, this time, Ethereum and other altcoins bore the brunt. The biggest hit came to ETH, which accounted for $56.55 million in liquidations. Solana followed closely behind with $33.59 million, as it suffered the sharpest decline among top assets. Ripple, BAN, Dogecoin, and BTC also faced substantial losses, with Bitcoin’s liquidations reaching $29.76 million.

This wave of liquidations signals a significant shift in market sentiment. With funding rates flipping negative, it indicates traders are now more cautious, with short positions gaining strength. Historically, such shakeouts either serve as a reset for the market, allowing for healthier price action, or act as a precursor to deeper corrections. Regardless of what follows, the sudden flush of leveraged positions highlights the risks of excessive speculation in crypto. Whether prices stabilize or continue their