The cryptocurrency market is experiencing massive liquidations amid a sharp drop in prices, resulting in total losses of $1.14 billion in a single day.
Market Situation
In the past 24 hours, Bitcoin (BTC) faced massive long liquidations, totaling $415 million, compared to short liquidations of $28.69 million. This created a 1,446% imbalance between the two sides. The sharp price drop when BTC fell below $103,000 triggered a chain reaction of forced liquidations, mainly affecting over-leveraged long positions.
Liquidation Distribution by Assets
In addition to Bitcoin, Ethereum (ETH) also faced liquidations amounting to $298 million. Other cryptocurrencies like Solana (SOL), Dogecoin (DOGE), and XRP experienced short-term losses in double-digit millions, leading to a total loss of $1.14 billion across the crypto market within a day. Overall, the 12-hour chart reflected $524 million in liquidations, with more than $449 million originating from longs.
Future Prospects
Despite Bitcoin's slight recovery to above $104,900, the market situation remains volatile. Funding rate data shows high unpredictability, and liquidation trends may continue. This indicates that leveraged traders are caught off guard, and the resulting imbalance may take time to correct.
The situation in the crypto market illustrates high volatility and the need for careful monitoring of price movements, as significant liquidations may continue to impact the market in the coming days.
