liquidations

Crypto markets saw a sharp sell-off over the last 24 hours, triggering a massive wave of liquidations.
According to CoinGlass data, total liquidations reached nearly $1.7 billion, as the overall crypto market cap fell around 6%. The move came during a risk-off environment, with rising geopolitical tension between the U.S. and Iran adding pressure across markets.
Long Traders Took the Biggest Hit
Most liquidations came from traders betting on upside.
Around 270,000 traders were wiped out in the past day.
Long liquidations: about $1.57B
Short liquidations: about $107M
This shows the market was heavily positioned on the long side before the drop.
Bitcoin and Ethereum Led the Liquidation Wave
Bitcoin accounted for nearly half of the total wipeout.
BTC liquidations: about $768M
Longs: roughly $745M
Ethereum also saw major forced selling.
ETH liquidations: about $417M
Longs: roughly $390M
Exchanges With the Highest Liquidations
The biggest liquidation volumes were concentrated on a few major platforms.
Hyperliquid saw the largest activity, followed by Bybit and Binance.
These forced closures happen when leveraged traders cannot meet margin requirements, and exchanges automatically close positions. During sharp drops, this selling pressure often accelerates the downside.
BTC and ETH Fell to Two-Month Lows
Both majors dipped to their lowest levels in about two months during early Asian trading.
Bitcoin dropped near $80,815
Ethereum fell to around $2,687
Prices later rebounded slightly, but volatility remains high.
Among the top 10, Solana was one of the biggest losers, falling around 7.7% in the same 24-hour period.
Risk-Off Mood Spread Across Markets
The turbulence was not limited to crypto. Reports also pointed to stress in metals and equities, with even tokenized gold exposures seeing liquidation events as the broader sell-off intensified.
Sentiment Drops Into Extreme Fear
Market psychology weakened quickly.
The Crypto Fear & Greed Index reportedly fell to 16, entering “extreme fear” territory and marking its lowest level so far this year.
On-chain data also suggested whale activity consistent with panic selling during the sharp move.
What Comes Next?
With geopolitical uncertainty, heavy deleveraging, and fragile sentiment colliding, traders are now preparing for continued volatility.
The key question moving into February is whether this liquidation flush sets up a relief bounce or if risk aversion keeps markets under pressure a bit longer.
Not financial advice. Stay cautious and manage risk.

#MarketCorrection #BTC #Liquidations

The numbers tell a familiar story, but they still land with weight.

Over the last 24 hours, crypto markets quietly ran a stress test on leverage, and leverage blinked first. More than $1.03 billion in positions were wiped out, affecting 235,589 traders in a single day. This was not a slow bleed. It was a cascade.

Zoom in, and the imbalance becomes obvious.

In just one hour, nearly $192 million was liquidated, with longs making up almost all of it. That pattern only intensified as time expanded. At four hours, long liquidations crossed $528 million. By twelve hours, they were nearing $729 million. Over the full day, longs accounted for roughly $914 million, while shorts barely crossed $118 million.

This was not a two-sided fight. It was a one-sided unwind.

What makes this interesting is not the size alone. Crypto has seen bigger liquidation days. What stands out is the consistency across timeframes. From one hour to twenty-four hours, the same group kept getting hit. That suggests positioning was crowded, conviction was shared, and risk assumptions were aligned in the wrong direction.

Think of it like a bridge where too many people decide to stand on the same side because the view looks better there. Nothing breaks at first. Then the structure shifts, and suddenly everyone realizes balance matters more than optimism.
$BTC
Liquidations are often framed as punishment or drama. In reality, they are feedback. They reveal where expectations were stacked too neatly, where protection was thin, and where traders forgot that markets move not just on belief, but on liquidity.

Another quiet detail matters here. Short liquidations stayed relatively small throughout. That tells us price did not violently reverse upward. Instead, it likely moved just enough, just long enough, to drain leveraged longs without offering relief rallies. That kind of price action is patient, not emotional.

For traders, this is a reminder that leverage does not care about narratives. It only cares about margins, timing, and volatility. For the broader market, it suggests excess risk is being cleared, which historically is not a bad thing. Markets tend to breathe better after crowded positions are flushed out.

This was not the end of anything. It was a reset.

And resets, while painful in the moment, are often how markets remind participants to respect gravity before trying to fly again.
#Liquidations #FedHoldsRates $BTC

$BTC Nearly all forced liquidations in Bitcoin futures markets recently have been from long positions, with a 97% share reported. The 30-day moving average liquidations indicator rose to 31.4%, reflecting sustained systemic selling pressure on buyers over the past month. Notably, despite steep price declines and cascading liquidations, the funding rate for Bitcoin perpetual contracts remains positive at an annualized rate of 43.2%, though lower than previous peak values above 100% from late 2023. This persistence of positive funding rates indicates continued dominance of longs in the market and suggests that deleveraging—where traders reduce risky leveraged exposure—is incomplete.
Market Sentiment
Investor sentiment shows clear ongoing optimism or expectation of price increases, as shown by the positive funding rates which incentivize short sellers to pay longs. However, persistent forced liquidation of longs reveals underlying anxiety and caution among leveraged traders, creating a tension between hope for upward movement and concern over volatility risks. Social media and trading forums likely reflect debates about the sustainability of this positive bias amid adverse price action, producing uncertainty. Quantitatively, the funding rate staying significantly above zero despite sharp declines signals that market participants remain engaged with leveraged long positions rather than fully retreating.
- Past: Previous episodes where funding rates stayed positive amid liquidations occurred during late 2023, with peaks above 100%, which sometimes preceded sharp price corrections followed by renewed rallies, demonstrating that markets can quickly rebuild leverage.
- Future: Given similar patterns, the Bitcoin market may experience further rounds of volatile price swings with liquidations as longs attempt to re-enter positions, posing risks of sudden drawdowns if funding rates eventually shift negative. Technical levels to watch include support zones where liquidations cluster and funding rate thresholds approaching zero, which could signal a more complete deleveraging ahead.
The ongoing long liquidation dominance and positive funding rates suggest elevated systemic leverage and increased risk of cascading liquidations if market sentiment turns sharply bearish. This environment can exacerbate short-term price volatility and may lead to rapid price shocks impacting correlated crypto assets and derivatives products. Additionally, sustained high leverage impairs market stability, increasing the probability of abrupt trend reversals that amplify investor losses and risk management challenges.
Investment Strategy
Recommendation: Hold
- Rationale: The market shows conflicting signals with aggressive long liquidations combined with sustained positive funding rates indicating incomplete deleveraging. While this environment carries significant volatility risk, it also reflects persistent buying interest, suggesting restraint rather than full exit is prudent.
- Execution Strategy: Maintain current long positions while closely monitoring funding rates and liquidation trends. Use trailing stops to protect gains against sudden downturns and consider partial rebalancing if funding rates decline toward neutral or negative levels.
- Risk Management: Keep stop-loss orders tighter due to increased volatility, ideally within 5-8% below entry levels. Diversify holdings to mitigate sector-specific risk and watch for shifts in sentiment indicated by funding rate contraction or major breaches in technical support.
- This cautious holding approach follows institutional investor practices to avoid panic selling while preparing for potential price swings, balancing opportunity with risk management.

in the last 24 hours
$696.7M worth of positions liquidated
Around 198k traders removed from the market
💡 Most of these liquidations were long positions.
📊 Breakdown:
1h: $359M (mostly longs)
4h: $395M (long pressure dominates)
12h: $446.9M
24h: $696.7M
Longs: $594.3M
Shorts: $102.4M
🔹 Quick Analysis
This shows the market has aggressively cleared leveraged longs after a sharp downward move.
Usually after such a wave:
Leverages reset
Market stabilizes
Conditions ready for the next move or high volatility ⚡
💬 Question for you (engagement):
Do you think this correction is the start of a bigger downtrend or just a leveraged reset?#Liquidations #BinanceSquare