Key Points
- The cryptocurrency market is experiencing a significant downturn, with Bitcoin, Ethereum, and other digital assets retreating from their recent highs.
- Nearly $160 million in open leveraged positions were forcibly liquidated across various centralized exchanges.
The beginning of the week has not been kind to cryptocurrency investors, as Bitcoin, Ethereum, Solana, and other digital assets have retreated from their January highs. This market downturn has erased substantial gains, leaving traders scrambling to predict the next move.
On Monday, almost $160 million in open leveraged positions across different centralized exchanges, such as Binance and Bitget, were forcibly liquidated as bearish sentiment continued to dominate the market. CoinGlass data reveal that more than 87,687 traders were affected during the sell-off, exacerbating the growing unease in the crypto space.
Bitcoin Under Pressure
Over the past 24 hours, Bitcoin has dropped nearly 2%, currently trading around $96,000 — a significant drop from its historic peak of $109,000 just a few weeks ago. CoinMarketCap data shows that the leading crypto asset has fallen by approximately 6% over the past four weeks, mirroring broader market instability.
Bitcoin, with a market capitalization of $1.9 trillion, is facing persistent selling pressure that has dented investor confidence. This price decline has triggered a chain reaction of losses for futures traders, as exchanges forcefully closed open positions to prevent further losses. Liquidations tied to Bitcoin alone totaled approximately $22 million, with $21 million coming from long positions and $1.37 million from shorts. This sharp downturn has sparked concerns about whether Bitcoin can regain its bullish momentum or if further declines are imminent.
Altcoins Experience Significant Losses
Altcoins, including Ethereum, also faced significant liquidations. Ethereum saw nearly $20 million in liquidations, with more than $15 million from long positions and approximately $4 million from shorts. The second-largest cryptocurrency by market cap is struggling to find support, adding to the uncertainty surrounding the broader market.
Other cryptocurrencies such as Solana and Binance Coin suffered liquidations of approximately $16 million and $1.5 million, respectively. Even the newly launched meme coin TRUMP was not spared, with traders experiencing nearly $5 million in losses due to the declining market conditions.
According to CoinGlass data, the largest single liquidation order occurred on the crypto exchange Bybit, where a trader lost $1.6 million in the BTC/USDT trading pair. The scale of these losses highlights the risks associated with leveraged trading, especially in uncertain market conditions.
Most liquidations occurred on Binance, the largest crypto exchange by trading volume. The company accounted for more than 35% of the total liquidations, making it the hardest-hit exchange during the downturn. Other major exchanges such as Bybit, OKX, HTX, Bitfinex, and BitMEX also reported substantial liquidation volumes, further emphasizing the widespread impact of the market crash.
