Bitcoin and Ethereum Spark $615M Crypto Liquidations Amid Sharp Market Decline

The cryptocurrency market experienced a significant wave of liquidations totaling approximately $615 million within a 24-hour period, driven by sharp price declines and margin calls across leveraged positions. According to data from CoinGlass, the majority of these liquidations—$533.52 million—were from long positions, while short positions accounted for $81.23 million. This reflects a broad sell-off fueled by falling prices and increasing pressure on leveraged traders. Ethereum was the hardest hit, with $233.71 million liquidated, nearly 90% of which were long positions. Bitcoin followed with $134.40 million in liquidations, $125.45 million of which were longs. Together, these two major cryptocurrencies accounted for nearly 60% of the total liquidations, underscoring their dominant influence on market dynamics. Smaller cryptocurrencies such as Solana, Dogecoin, and XRP also faced substantial losses, each ranging between $20 million and $35 million. Altcoins collectively saw over $53 million in liquidations, highlighting a sector-wide selloff as volatility spread across the crypto ecosystem. Currently, Bitcoin is trading near $113,800 and Ethereum around $3,511, both posting weekly declines of 3.49% and 6.22% respectively. This sustained selling pressure has raised concerns among analysts about the possibility of further price corrections if critical support levels fail to hold. Experts warn that leveraged long traders are particularly vulnerable. Ethereum’s key support level is near $3,500, while Bitcoin’s critical zone is around $113,000. A breach of these levels could trigger additional liquidations, amplifying short-term price volatility. This ongoing liquidation trend reflects a challenging environment for leveraged positions amid bearish momentum. As Ethereum and Bitcoin lead the selloff, market participants remain cautious, closely monitoring for signs of further downward movement.

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Source: Bitcoin News Today: Ethereum and Bitcoin Trigger $615M Crypto Liquidations Amid Sharp Price Declines

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Frequently Asked Questions (FAQ)

Market Volatility and Liquidations

Q: What caused the recent surge in crypto liquidations? A: The surge in liquidations was primarily driven by sharp price declines in Bitcoin and Ethereum, which triggered margin calls on leveraged positions. Q: Which cryptocurrencies were most affected by liquidations? A: Ethereum and Bitcoin experienced the largest amounts of liquidation, followed by smaller cryptocurrencies like Solana, Dogecoin, and XRP. Q: What are the risks for leveraged traders during market downturns? A: Leveraged traders are particularly vulnerable during market downturns. Price drops can lead to margin calls, and if traders cannot meet these calls, their positions are automatically liquidated, further exacerbating price declines. Q: What are the critical support levels for Bitcoin and Ethereum mentioned in the article? A: The article mentions Ethereum's key support level is near $3,500, and Bitcoin's critical support zone is around $113,000.

Crypto Market AI's Take

This significant liquidation event highlights the inherent volatility within the cryptocurrency market, particularly when leverage is involved. For traders navigating such conditions, understanding market dynamics and implementing robust risk management strategies is paramount. Our platform offers advanced tools, including AI-powered trading bots and real-time market analysis, designed to help users make more informed decisions and potentially mitigate risks associated with sharp market movements. Exploring our AI-driven insights can provide a competitive edge in understanding and responding to such market events.

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• How to Evaluate Cryptocurrency
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• Why is Crypto Down Today?