Crypto Correction Wipes Out $929M in Longs as BTC and ETH Drop Sharply
A sharp market correction erased about $929 million in leveraged positions within 24 hours, driven largely by long liquidations that intensified price declines in Bitcoin and Ethereum. Exchange data (Coinglass, Binance) show BTC fell roughly 8% to near $84,113 USDT and ETH plunged about 9.9% to near $2,743 USDT. Long liquidations accounted for approximately $858 million versus $71 million in short liquidations, highlighting excessive bullish leverage. The sell-off followed a post-ETF rally earlier in 2025 and came after market peaks in October, when total crypto market value was reportedly over $1 trillion higher. Analysts point to macro uncertainty, ETF outflows, and Bitcoin’s four-year issuance cycle as contributing factors. Market cap slid; technical support levels for BTC/ETH were tested. For traders: expect elevated volatility and amplified downside risk from rapid long liquidations; monitor BTC and ETH support levels, ETF inflows/outflows and macro indicators; consider reducing leverage, using hedges or stop-losses until spot demand and positive ETF flows reappear. The event may purge excess leverage and lead to consolidation, but a sustained recovery likely requires renewed spot demand, ETF inflows and improved macro signals.
Bearish
The news is bearish for the mentioned cryptocurrencies (BTC and ETH). Rapid, large-scale long liquidations typically accelerate price declines through forced selling and margin cascades; this event wiped out roughly $858M of long positions, signaling that bullish leverage was crowded and vulnerable. In the short term, expect heightened volatility and further downside pressure as stop-losses trigger and weak hands exit. Technical support levels for BTC and ETH are being tested, making short-term rallies tenuous until buying returns. In the medium-to-long term the impact is mixed: the purge of excessive leverage can set the stage for healthier price discovery and reduce fragility, but a sustained recovery likely depends on renewed spot demand, positive ETF inflows, and stronger macro conditions. Absent those catalysts, price risk remains to the downside.