Crypto Futures Liquidations Wipe Out ~$350M, Longs Hit Hard
A sharp downturn in crypto futures markets triggered roughly $350–423 million in liquidations across major assets, overwhelmingly impacting long positions. Combined reports show Bitcoin saw $170–232 million liquidated (about 82–91% longs), Ethereum lost $150–158 million (around 79–87% longs), and Solana endured roughly $31.9–33.2 million wiped out (≈79–91% longs). The one-sided nature of the event points to excessive long positioning, high leverage, cascading stop-loss triggers and elevated funding-rate pressure that amplified selling. Traders should expect increased short-term volatility, potential short-lived relief rallies after forced selling eases, and a position reset as leveraged players reduce exposure. Risk-management actions recommended: lower leverage, stagger entries, use tighter stop-losses, monitor funding rates and market sentiment, and diversify allocations to avoid repeat cascading liquidations.
Bearish
The liquidation wave is net bearish for the mentioned assets in the short term. Large long-side liquidations remove buying pressure and can trigger further price declines as stop-losses and margin calls cascade. Elevated liquidations also raise funding-rate stress and push leveraged traders to deleverage, reducing demand and liquidity. While such forced selling sometimes precedes short relief rallies when selling pressure subsides, the immediate impact is downward price pressure and higher volatility. Over the medium term, markets may stabilise as positions are rebuilt more conservatively, but near-term price action is likely bearish until leverage is reduced and order books recover.