Crypto Liquidations: $330M in 24h, $32M in 1h Mostly Longs
Coinglass data shows crypto liquidations in futures markets hit $330 million in the past 24 hours, wiping out $140 million of Bitcoin long positions, $130 million of Ethereum shorts and $60.6 million in ZEC shorts. In the most recent hour, crypto liquidations topped $32 million, with longs accounting for $30.7 million. These liquidation events highlight extreme market volatility and the dangers of high leverage trading. Sudden margin calls can spark rapid price swings and amplify bearish momentum. Traders should track funding rates and open interest, employ tighter stop-loss orders and limit leverage to mitigate liquidation risks and prepare for potential reversals.
Bearish
The surge in crypto liquidations and heavy long position unwinds is likely to exert short-term bearish pressure on prices. Forced margin calls can accelerate downward price swings and reinforce negative market sentiment. However, such extreme sell-offs may also lead to oversold conditions and set the stage for potential relief rallies. Overall, the immediate impact is bearish, though prudent risk management and monitoring of funding rates could help traders anticipate possible reversals in the longer term.