Crypto Market Sees $685M Liquidations as BTC and ETH Face Heavy Selling Pressure

The crypto market experienced a major liquidation event, with over $685 million wiped out in the past 24 hours.

According to the latest data, Ethereum led the liquidations at $146.84 million, followed closely by Bitcoin at $142.39 million, and Solana at $83.30 million.

This sharp downturn in the market resulted in over 251,000 traders facing forced liquidations, signalling a high level of leverage unwinding across major exchanges. Long positions accounted for the majority of the liquidations, with $615.53 million in longs getting liquidated, compared to only $70.20 million in shorts.

Bitcoin and Ethereum Lead Market Declines

Bitcoin’s price has fallen 2.6% in the last 24 hours, currently trading at $93,260, after failing to sustain support levels above $94,700, where a key liquidation cluster triggered. The drop below the 50-day moving average intensified selling pressure, leading to increased volatility.

Ethereum saw an even steeper decline, down 8.3% in 24 hours, currently trading around $2,568. The sharp sell-off in ETH contributed significantly to the total liquidation volume, with funding rates turning negative, indicating a shift in market sentiment. Solana also faced heavy selling pressure, dropping 13.5%, making it one of the worst-performing assets among the top cryptos.

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What’s Driving the Market Drop?

Unlike previous volatility events, macroeconomic factors weren’t the main trigger. With no major economic reports like CPI or FOMC meetings, the decline appears driven by a combination of liquidations, funding rate shifts, and investor sentiment.

The Bybit hack, which resulted in a $1.4 billion loss, has also contributed to uncertainty. While not the primary cause of the sell-off, it underscores growing concerns over security risks in crypto markets, particularly as institutions assess counterparty risks.

Bybit saw the largest liquidation volume among exchanges, with $141.80 million in liquidations, followed by Binance at $60.05 million. Open interest (OI) data reveals a notable decline, with CME futures dropping 2.69% in OI, while Binance saw a 7.69% increase, suggesting some traders are repositioning for potential reversals.

Meanwhile, traders are closely watching ETH Denver, a major Web3 conference, for potential bullish catalysts. Historically, such events have sparked announcements that drive momentum in specific projects. However, in the current bearish climate, even positive news may struggle to shift sentiment.

With funding rates turning neutral to slightly negative and open interest fluctuating, traders are now eyeing key support levels. If Bitcoin holds above $92,500, we may see a stabilization in price action. However, if selling pressure continues, a deeper retracement towards $90,000 remains a possibility.

For now, the market remains volatile, with traders adjusting strategies amid the ongoing shakeout. As liquidations cool off, attention will shift toward potential recovery signals and whether bulls can reclaim lost ground.

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