Futures Liquidations Hit $1.3B on BTC & ETH Volatility

Bitcoin surged from $112,000 to $116,500, triggering over $1.01 billion in short liquidations across crypto futures. BTC shorts accounted for nearly $570 million, while ETH shorts added $206.9 million. Total crypto market capitalization rose 4.4% to $3.63 trillion, and on-chain “accumulator” wallets now hold over 248,000 BTC. The Market Value to Realized Value (MVRV) ratio remains below 2.75, suggesting room for BTC to climb toward $130,900. However, $2.1 billion in long positions risk liquidation if BTC dips back to $112,000. In the following 24 hours, crypto futures liquidations reached $1.326 billion. Long positions accounted for the bulk of this volume as BTC and ETH price swings triggered margin calls. Analysts warn that elevated liquidation levels signal increased risk and short-term bearish pressure. A technical rebound may follow as traders rebuild positions. Market participants should monitor leverage ratios and key support levels to manage downside exposure, especially in the face of potential macroeconomic shocks or regulatory changes.