Crypto Liquidations Hit $92.8M in One Hour, Longs Make Up 98%
Coinglass data reports that crypto contract liquidations hit US$92.78 million in the past hour. This crypto liquidation surge was dominated by long positions, with US$91.09 million (98.1%) liquidated. Short positions saw just US$1.70 million in liquidations. Such crypto liquidations reflect intensified downward pressure and market volatility, as leveraged long traders are forced into margin calls. Traders should monitor these liquidation trends for potential price swings.
Bearish
The forced liquidation of over US$91 million in long positions indicates strong bearish pressure. Historically, mass long liquidations, such as during 2021 and 2022 downturns, have triggered swift price drops as leveraged traders exit positions. In the short term, this event may exacerbate downward momentum and volatility. Over the longer term, extreme liquidations can lead to oversold conditions and potential rebounds, but near-term market sentiment remains bearish.