A sharp sell-off in cryptocurrency markets triggered significant liquidations of leveraged positions, with Bitcoin prices dropping below $116 000 and prompting the closure of over 213 700 long contracts. According to data from on-chain tracking platform CoinGlass, the liquidated volume surpassed $585.86 million over the past 24 hours.
Bitcoin (BTC) accounted for $140.06 million of the total liquidations, sliding 2.63 percent to near $115 356 amid heightened sell pressure. Ether (ETH) longs also saw $104.76 million in forced unwinds, dipping 1.33 percent to $3 598. The broader memecoin sector fared worse, with Dogecoin (DOGE) plummeting 7 percent and contributing $26 million to the liquidation tally.
Market analysts attributed the mass liquidations to rapid deleveraging by derivative traders reacting to shifting macroeconomic sentiments. Data indicated that a convergence of rising US Treasury yields and firmer core inflation readings under recent tariff policies eroded risk appetite, spurring a swift exit from high-leverage positions.
On-chain metrics revealed peak open interest in Bitcoin perpetual futures contracts, indicating that trader positioning was heavily skewed towards long exposure. As markets began to reverse, automated margin calls cascaded, exacerbating volatility and generating a feedback loop of forced selling.
Over $731.93 million was wiped out across both long and short positions, underscoring the systemic risks inherent in highly leveraged digital asset markets. Traders are advised to monitor funding rate dynamics, liquidity depth, and macro indicators when managing derivative exposures.
Despite the downturn, some technical analysts noted potential support zones at Bitcoin’s 200-day moving average and critical Fibonacci retracement levels. Market participants are now watching central bank communications and US economic data releases for clues on potential stabilisation or further downside risk in the coming sessions.
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