Étienne Girard
The crypto market faced around $1.7 billion in liquidations over the past day, according to data compiled by Coinglass. A majority of the losses — nearly $1.62 billion — came from long positions, highlighting the intense pressure on bullish traders.
Within a span of only four hours, approximately $1.09 billion was liquidated, with longs making up $1.06 billion of that total. In total, more than 404,000 traders saw their positions wiped out, with the largest single liquidation being a $12.74 million BTC-USDT swap on OKX, Coinglass reported.
Why Liquidations Happen
Liquidations occur when traders fail to maintain enough margin to cover their positions, forcing exchanges to automatically close them. While public data gives a snapshot of this activity, analysts warn that API restrictions and incomplete reporting often understate the true extent of liquidations, meaning the actual market damage may be far greater.
Bitcoin and Ethereum Lead Market Decline
The wave of liquidations followed sharp price drops across major cryptocurrencies. Bitcoin fell 2.5% to $112,890, while Ethereum plunged 6.2% to $4,196, according to PRIME’s price tracker. These moves triggered cascading sell-offs that deepened the overall market downturn.
Analysts Question the Bull Cycle’s Strength
Market experts told PRIME that while the Federal Reserve’s September interest rate decision was once considered a major catalyst for crypto prices, the latest downturn suggests the current bull cycle may already be losing momentum.
