- Over $713 million in crypto long positions were liquidated within 24 hours, led by sharp declines in Bitcoin, Ethereum, and major altcoins like Dogecoin and Solana.
- The sell-off followed the U.S. CPI report, triggering a “sell the news” reaction and highlighting the risks of leveraged trading amid rising market volatility.
Bitcoin and Ethereum Trigger Major Market Shakeout
The crypto market was rocked on Thursday by a wave of long position liquidations, wiping out more than $713 million in leveraged bets in just 24 hours. Leading the downturn were Bitcoin (BTC) and Ethereum (ETH), which saw significant price dips following intensified market volatility. BTC alone accounted for $317 million in liquidations—$306 million from long positions—sending its price below $106,200, a 3% daily decline.
Despite the sell-off, Bitcoin still holds a modest 5% weekly gain, while Ethereum, though down over 6% to $2,650, retains a 9% rise over the week. These losses reflect the risks of leveraged trading amid rapid market corrections and underscore shifting investor sentiment.
Altcoins Follow Suit in Broad Crypto Sell-Off
The ripple effects didn’t stop with Bitcoin and Ethereum. Solana (SOL) plunged more than 6% to $152.80, XRP fell 4% to $2.20, and Dogecoin (DOGE) led the losses with a 7% slide to $0.181. These moves mirror a broader market trend of investors pulling back, triggered partly by a “sell the news” reaction following the latest U.S. CPI report, which showed slowing inflation for May.
While easing inflation is typically a bullish macro signal, traders chose to take profits, intensifying the correction across digital assets.
What This Means for Crypto Traders
According to CoinGlass, one standout liquidation included a massive $201 million long bet on Binance, spotlighting how quickly leveraged positions can unravel. The crypto market dropped nearly 5% overall, with liquidations reflecting growing caution among risk-exposed traders.
With volatility ramping up, experts stress the importance of risk management and cautious positioning. Monitoring real-time data from platforms like CoinGlass and CoinGecko is critical as markets adjust to shifting macroeconomic signals and investor behavior.
Summary Points:
- Over $713M in long positions were liquidated in 24 hours amid a market-wide sell-off.
- Bitcoin and Ethereum led the losses, while Dogecoin was the worst-performing altcoin.
- The correction followed the May CPI report, triggering a “sell the news” wave.
