Over $5.7B long positions liquidated in 7 days amid worst crypto week
Crypto traders faced the worst week since the FTX collapse as futures liquidations spiked. CoinGlass data shows $5.7B in long positions were liquidated over seven days, while total leveraged liquidations (longs + shorts) neared $7B. The drawdown also coincided with about $390B evaporating from total crypto market cap.
Longs took the majority of the damage: over 80% of liquidations came from traders positioned for price gains. Bitcoin (BTC) and Ether (ETH) posted their worst weekly performance since November 2022. The article links the speed of this selloff to a recurring futures-market dynamic: leveraged longs pile in during rallies, then price declines trigger liquidation thresholds, forcing automatic selling and accelerating further drops.
A key prelude was a 13-day streak of Bitcoin spot ETF outflows. Approximately $4.4B left during the streak before it ended around June 5. The implication for trading is twofold. First, crowded bullish leverage increases liquidation risk. Second, when ETF outflows reduce spot support while futures leverage unwinds simultaneously, downside pressure can compound.
The June 5 end to the outflow streak is described as only a start, not proof of a reversal—one day of inflows after nearly two weeks of outflows does not confirm a durable trend. Overall, the setup resembles prior “confidence stress” episodes, but without an exchange fraud event like 2022’s FTX.
Bearish
The data points to a classic leveraged-long unwind that typically pressures prices in the short term. With longs accounting for over 80% of liquidations and more than $5.7B wiped out in a week, forced selling likely overwhelmed dip buyers. The added ETF outflow backdrop matters: a 13-day streak with ~$4.4B leaving spot ETFs suggests reduced institutional support, so spot demand may not be strong enough to absorb selloffs during futures deleveraging.
Historically, similar liquidation cascades often create sharp volatility and can prolong downside until leverage resets (lower open interest and fewer tight liquidation thresholds). The article notes a prior precedent in October 2025, when leverage liquidations were triggered by a shock event; after such events, leverage can rebuild quickly, which increases the risk of another drawdown if sentiment deteriorates again.
On the longer horizon, the key bearish risk is persistence: even if BTC/ETH rebounds after the outflow streak ends around June 5, a single-day inflow does not confirm sustained ETF inflows. Traders should expect continued volatility and may treat this as a warning that crowded long exposure can trigger repeatable selloff dynamics.