Crypto liquidations wiped $1.68 billion in 24 hours after excessive leverage in altcoins triggered mass long liquidations, pushing the market into a risk-off reset and trimming nearly $180 billion from total market cap.
Overleveraged longs caused $1.68B in liquidations
Derivatives Open Interest (OI) reached record levels, amplifying the sell-off
Bitcoin bore ~40% of the decline; altcoins absorbed most losses, suggesting a broad market reset
Crypto liquidations wiped $1.68B in 24h — see causes, data, and trader action points. Read the full analysis and expert context.
What caused the $1.68B crypto carnage?
Crypto liquidations were driven by concentrated leveraged long positions in altcoins and surging derivatives activity. When large long books broke support, exchanges auto-liquidated margin positions en masse, producing a cascading sell-off that erased $1.68 billion and pushed the market into risk-off mode.
How large were the liquidations and who was hit hardest?
In the past 24 hours, 389,769 traders were liquidated, with 95% of losses from long positions. The market lost nearly $180 billion in nominal value, and the TOTAL crypto index fell 4.55%. Bitcoin accounted for roughly 40% of the drop, meaning altcoins absorbed the majority of the carnage.
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Source: CoinGlass (data cited as plain text)
Is this a bearish signal for Bitcoin and the wider market?
Bitcoin pullback dynamics show this was not a BTC-led crash. BTC fell to a $2.23 trillion market cap (a 3.04% drop) but represented only ~40% of the total decline. That distribution suggests a broad derivatives-driven reset rather than a fundamental collapse in BTC demand.
What does Open Interest data tell us?
Derivatives OI hit record highs during this period, with market-wide OI reaching $227 billion at one point. Historical patterns show that parabolic OI increases precede sharp liquidations; for example, OI was previously $213 billion on 23 July (plain text reference). Elevated OI concentrated in altcoins increases system-wide vulnerability.
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Many altcoins experienced concentrated leverage accumulation. With margin positions and perpetual futures concentrated in smaller-cap markets, a few large liquidations created slippage that cascaded through order books. This structure magnified price moves and redirected the bulk of losses to alt markets.
Plain text reference: COINOTAG reported similar leverage patterns prior to this event.
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