BTC and ETH Longs Trigger $427M in Futures Liquidations
Crypto futures liquidations surged to $427 million over a 24-hour period, driven by massive long-position unwindings amid extreme volatility. Longs accounted for $293 million versus $134 million in shorts. Bitcoin futures saw around $113 million liquidated, with 84.86% of positions long, while Ethereum faced roughly $90.4 million wiped out at a 90.26% long ratio. Updated figures show Bitcoin and Ethereum liquidations reaching $114 million and $108 million, respectively. Zcash liquidations also hit $38.22 million, 74.85% from long bets. These crypto futures liquidations underscore the risks of leveraged trading and can signal potential trend reversals. Traders should manage risk with proper position sizing, stop-loss orders, and by monitoring funding rates and market sentiment.
Bearish
The record $427 million in crypto futures liquidations, dominated by forced unwinds of BTC and ETH longs, indicates substantial selling pressure and deleveraging. In the short term, these forced liquidations can amplify downward momentum, triggering cascade effects as stop-loss and margin calls execute. Over the longer term, the sharp reduction in leverage may alleviate overbought conditions and pave the way for stabilization or a technical rebound. However, until leverage resets and sentiment improves, the prevailing impact remains bearish for Bitcoin and Ethereum.