With over 60% of the $301 million in liquidations coming from long positions, many traders were caught on the wrong side of a sudden market reversal, leading to significant losses across multiple exchanges.
The cryptocurrency market staged a strong rebound, but not without casualties, as traders faced $301 million in liquidations within the past 24 hours. According to data from CoinGlass, the sudden market reversal triggered forced liquidations of leveraged positions, leaving traders exposed to significant losses across multiple platforms.
The bulk of the liquidations occurred in Bitcoin BTC $114 843 24h volatility: 1.5% Market cap: $2.28 T Vol. 24h: $24.24 B and Ethereum ETH $3 546 24h volatility: 3.8% Market cap: $427.69 B Vol. 24h: $18.26 B positions, with BTC accounting for over $77.40 million in liquidated trades. Ethereum was not far behind, with nearly $70 million wiped out as traders struggled to anticipate the rapid price recovery.
Long Traders Hit the Hardest
Most of the liquidations stemmed from over-leveraged positions, where traders had borrowed funds to amplify potential profits. While this strategy can result in significant gains during market upswings, it leaves traders vulnerable to liquidation when prices move against their positions. As crypto markets bounced back, many positions failed to meet margin requirements, forcing exchanges to close trades at a loss.
According to CoinGlass, long positions made up over 60% of the liquidations, signaling that traders had expected prices to continue dropping before the market rebound caught them off guard. These traders suffered a combined loss of $180.94 million within the past 24 hours.
Short traders on the other hand were hit with a $120.22 million loss. The largest single liquidation order occurred on OKX, with an ETH trade worth $6.55 million being forcefully closed.
The liquidations occurred primarily on centralized crypto exchanges with Binance contributing nearly 50% of the entire losses. CoinGlass data shows that approximately $133 million in leveraged positions were forcefully closed on the platform.
Other exchanges such as Bybit, HTX (formerly known as Huobi Global), OKX, and CoinEX were major contributors.
Altcoin Traders Not Spared from Market Uncertainty
Apart from Bitcoin and Ethereum which accounted for the majority of the closed leverage positions, altcoins were not spared in the liquidation wave, with digital assets like Solana (SOL) and even meme coins like Pepe Coin (PEPE) positions liquidated as traders were caught offside by the rapid price reversal.
Solana, in particular, saw over $10 million in liquidations in the past 24 hours. As usual, long traders suffered the hardest hit with more than $6 million liquidated while short traders reported a modest loss of about $4.24 million.
As for PEPE traders, these groups suffered nearly $7 million in liquidation with most of the losses coming from long positions.
Despite the recent $301 million in liquidations, crypto traders remain undeterred, continuing to take positions in the hopes of profiting from market movements. However, the volatility persists, with more than $2 million being liquidated just an hour ago as market conditions shifted against some traders. The ever-changing tides are proving costly for those caught on the wrong side of the rebound.
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