Crypto Futures Liquidations Top $985M Amid Volatility
Crypto futures liquidation surged in recent days, with $727M wiped out in one 24-hour period. A separate crypto perpetual futures liquidation event then saw $258M forced closures across major tokens.
Ethereum led with $149.8M liquidated—85% from long positions. Bitcoin saw $67.4M (77% longs) and Solana $41.6M (92% longs). High leverage, extreme market volatility, and missing stop-loss orders triggered a cascade of automatic liquidations. These crypto perpetual futures liquidation events often amplify selling pressure and spike funding rates across exchanges.
To manage risk, traders should cap leverage under 10x, set stop-loss orders, maintain healthy margin buffers, diversify holdings, and prioritize robust risk controls.
Bearish
Massive forced liquidations—$727M in general futures and $258M in perpetual futures—underscore acute selling pressure and spiked funding rates. In the short term, cascading auto‐liquidations driven by high leverage and volatility can drive prices lower. Longer term, traders may adopt tighter risk controls and lower leverage, tempering rebound momentum and maintaining subdued market activity.