$840M Wiped in Crypto Longs as BTC, ETH Lead Market Meltdown
More than $840 million in bullish crypto futures positions were liquidated within a single day as bitcoin’s sharp dip sent shockwaves through the entire digital asset market. Data from CoinGlass shows that overleveraged traders were caught off guard, with bitcoin (BTC) and ether (ETH) accounting for the bulk of the losses — $322 million and $290 million, respectively.
The selloff wasn’t limited to the two largest cryptocurrencies. Futures tied to popular altcoins like XRP and Solana’s SOL experienced a combined $80 million in liquidations, signaling heavy speculative pressure across the board. At its worst point late Tuesday, BTC slipped below $77,000 while ETH crashed 15% to near $1,500 — both experiencing their roughest start to what’s historically been a bullish month.
Tokens across the spectrum, from memecoins like Dogecoin (DOGE) to DeFi staples and midcaps, saw steep drawdowns ranging from 10% to 20%. Solana, XRP, and DOGE each plunged as much as 15% before recovering slightly during the Asian market hours. BNB fared relatively better, down around 6%.
Interestingly, CoinGlass data revealed that around 86% of futures bets were skewed bullish — suggesting that most traders were expecting a rebound or near-term relief rally. That optimism may have backfired, triggering a wave of liquidations as prices failed to hold key levels.
A liquidation occurs when a leveraged position is forcibly closed due to insufficient margin, often exacerbating price swings during times of volatility. Such cascading liquidations are sometimes seen as signals of capitulation, potentially setting the stage for a reversal.
Beyond crypto, global markets also faced headwinds. U.S. stock index futures dropped roughly 5% as traders digested geopolitical tensions and lingering concerns over the economic impact of renewed Trump-era tariffs. Hedge fund titan Bill Ackman chimed in, warning of a looming “economic nuclear war” and urging a pause on aggressive policy moves.
This confluence of crypto-specific and macroeconomic pressures highlights just how intertwined digital assets have become with broader financial sentiment — and how quickly tides can turn when leverage meets fear.