The wave of leveraged liquidations has swept through the market in the past 24 hours, wiping out approximately 1.44 billion USD in positions and primarily hitting long orders of altcoins, indicating that investors bet on a recovery but are "out of phase" as prices continue to decline.
This trend is characterized by a rapid increase in liquidations over a short period, creating a forced selling effect in a chain. Data shows a strong imbalance leaning towards the long side, increasing the risk of volatility, especially in altcoin markets with thin liquidity and high leverage.
MAIN CONTENT
Liquidations in the past 24 hours were approximately $1.44 billion, of which long orders dominated.
Altcoins bear most of the forced selling pressure, with major tokens experiencing significant liquidations.
The rapid liquidation speed increases volatility risk, but it may help 'reset' short-term leverage.
Liquidations of $1.44 billion mainly came from long orders.
In the past 24 hours, the market recorded approximately $1.44 billion in liquidations, of which about $1.26 billion were long orders and approximately $187 million were short orders.
Data shows that the liquidation sell-off accelerated quickly over time. Total liquidations increased from $427.8 million in 1 hour to $661.6 million in 4 hours, reaching $930.2 million in 12 hours, before rising to about $1.44 billion after 24 hours.
A significant gap between long and short positions indicates a strong structural bias towards recovery expectations, especially among altcoins. As prices continue to fall, leveraged long orders are triggered for stop-losses/forced closures, spreading selling pressure.
Altcoins bear most of the forced selling pressure.
Liquidation data indicates that altcoins were more impacted than Bitcoin during the 'leverage liquidation,' reflecting higher leverage usage and typically thinner order books.
In the context of Bitcoin's decline creating overall pressure, real-time liquidation data shows that the pressure on altcoins is more pronounced across multiple time frames.
Ethereum led the losses among major tokens, recording over $120 million in liquidations within the most recent hour, as leveraged long orders were 'washed' across multiple exchanges.
Solana followed with approximately $33 million in liquidations, while XRP was wiped out by over $13 million during the same period. Dogecoin and Sui also recorded heightened liquidation activity, indicating the spread of the deleveraging process from large-cap to mid-cap.
Exchange data for the past 24 hours indicates that long liquidations dominated on major platforms like Binance, Bybit, Hyperliquid, OKX, and Gate. This pattern resembles a synchronized market 'unwind' rather than a localized incident on individual exchanges.
The increase in liquidation speed raises volatility risk.
Liquidation spikes within a narrow time window can amplify downward momentum, as forced selling self-'feeds' the trend when price declines trigger additional liquidation orders.
The notable point is not only the total amount liquidated but also the speed. When liquidations rise rapidly in a short time, mandatory selling drives prices down further, causing subsequent liquidation thresholds to be continuously hit.
This often leads to greater volatility in altcoins, where liquidity is poorer and common leverage levels are higher compared to the Bitcoin market. As a result, price fluctuation ranges widen, and slippage risk increases during stressful market conditions.
The data on liquidation history over the past 90 days shows that similar patterns often appear along with rapid corrective moves. However, the current phase belongs to a more severe group in terms of 'long-side dominance,' meaning that resetting leverage could help the market reduce short-term risks, but often at the cost of a strong price drawdown.
Altcoins may stabilize in the short term, but the risk of re-accumulating leverage remains.
After most leveraged long orders have been swept, altcoin prices may stabilize temporarily if selling pressure weakens, but volatility remains high if the overall market continues to be weak or if traders re-enter too soon.
When leveraged positions have been significantly 'cleared,' the market sometimes enters a more balanced phase due to fewer chain liquidation trigger points. In a scenario where selling pressure gradually decreases, price behavior may become less erratic and form a short-term accumulation zone.
However, risks remain if weaknesses in the macro/crypto market persist, or if traders quickly reopen large leveraged long positions. Re-accumulating leverage while liquidity has not recovered could trigger another decline, leading to new chain liquidations.
Therefore, the signals to watch are whether the pace of liquidation cools down, whether the long/short ratio becomes more balanced, and whether subsequent declines continue to cause strong 'cascades' like before.
Frequently Asked Questions
Why are liquidations this time mainly long orders?
Out of the total approximately $1.44 billion liquidated, long orders accounted for about $1.26 billion, indicating the market is betting on a recovery. As prices continue to decline, leveraged long positions are forcibly closed in bulk.
Do altcoins or Bitcoin bear a heavier impact during the leverage decline?
Liquidation data shows that altcoins bear most of the forced selling pressure. This often occurs because altcoins have thinner order books and higher leverage usage, making chain liquidations more likely.
What does a rapid increase in liquidation speed mean for price volatility?
When liquidations increase sharply in a short period, forced selling can amplify the downward momentum and trigger additional chain liquidations. As a result, volatility increases, especially in altcoins.
After 'resetting' leverage, can altcoins recover immediately?
Altcoins may stabilize in the short term if selling pressure weakens because many long orders have been swept. However, volatility may persist if the overall market remains weak or if leverage accumulates too quickly again.
Source: https://tintucbitcoin.com/nha-dau-tu-altcoin-chay-lenh-long/
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