Crypto Futures Liquidations Surge to $424M, BTC & ETH Hit
Coinglass data shows crypto futures liquidation surged to $424 million in the latest 24 hours, nearly doubling from $212 million prior. Long positions accounted for $230 million of this contract liquidation, while shorts made up $194 million. Bitcoin (BTC) liquidations totaled $59.8 million and Ethereum (ETH) accounted for $130 million, with Dogecoin (DOGE) at $19.9 million. This spike in crypto futures contract liquidation underscores heightened market volatility and the risks of high leverage. Traders should monitor funding rates and ensure sufficient margin to manage rapid price swings.
Bearish
The surge in contract liquidations, particularly among long positions, signals forced unwinds that typically accompany sharp price declines. The outsized BTC and ETH closures demonstrate significant selling pressure. In the short term, the liquidation cascade may drive further downward momentum and volatility. Over the longer term, the market may stabilize as excessive leverage is cleansed, but near-term sentiment remains bearish given the scale of forced liquidations.