A violent flush of leveraged positions hit the crypto market on Wednesday, with Ethereum and XRP emerging as the primary casualties.
In just four hours, total liquidations surged to $288.21 million, with $258.74 million coming from long positions alone.
Ethereum led the charge with over $54 million in liquidations, while XRP followed closely with more than $41 million wiped out. Bitcoin was relatively less affected, accounting for only $19.58 million in liquidations.
The short-term bloodbath suggests aggressive long positioning in altcoins just before the market turned red. Despite ETH and XRP posting solid weekly gains—12.73% and 10.28%, respectively—the sharp correction exposed the fragility of highly leveraged bets.
[readmroe id=”94994″]
The broader crypto market is also showing signs of cooling. The total market cap has slipped to $3.86 trillion, while 24-hour trading volume dropped over 13% to $191.24 billion. Over the past 24 hours, liquidations totaled $507.93 million, adding to the pressure.
Outlook
The swift drop in altcoin prices and resulting long liquidations underscore a cautious tone entering the second half of the week. Traders may look to reduce leverage as volatility picks up, especially in Ethereum and XRP, which remain the most exposed in current conditions.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/ethereum-and-xrp-lead-288m-liquidation-spree-in-just-4-hours/