Crypto Markets See $675 Million in Liquidations as Rally Cools
It was a rough night for crypto traders. Late Monday, a sudden wave of selling swept through the market, wiping out over $675 million in leveraged positions—one of the biggest single-day liquidation events since April.
Long traders took the hardest hit, losing about $406 million as prices dropped. Short sellers didn’t escape either, with another $269 million in losses. Bitcoin longs alone accounted for nearly half the damage, bleeding $333 million. Ethereum and XRP followed, down $113 million and $36 million respectively. Even meme favorite Dogecoin wasn’t spared, tumbling 7.6% and shedding around $14 million in liquidations.
Why the Sudden Drop?
After days of steady gains, it seems traders decided to cash in. Bitcoin slipped 3.1%, Ethereum 2.6%, and the broader market followed. The biggest single blow? A $98.1 million Bitcoin long on Binance that got liquidated in one go, according to Coinglass.
Some analysts think this was inevitable. Funding rates—what traders pay to hold leveraged positions—had been climbing, making bets more expensive. And after such a strong rally, a pullback isn’t exactly shocking.
QCP Capital put it this way in a note: “With BTC in uncharted territory, short-term ceilings are unclear.” They pointed to February’s $2 billion liquidation mess as a reminder of how quickly things can unravel.
Mixed Signals Ahead
Options traders aren’t panicking, though. Short-term volatility is up but still below last year’s average. Longer-term bets still lean bullish, with call options for September and December in demand. But right now, nobody’s rushing to push prices higher.
Ryan Lee from Bitget sees both sides. He told CoinDesk that Bitcoin could realistically hit $150,000 by Q3, thanks to ETF inflows, tight supply, and a softer dollar. But he also warned: “This isn’t a one-way street.” Profit-taking, Fed speculation, or even geopolitical shocks could send Bitcoin into a $105,000–$115,000 slump before it climbs again.
For now, the market feels like it’s catching its breath. Whether this is just a pause or the start of something bigger, nobody knows for sure. But after Monday’s bloodbath, traders might be thinking twice before going all-in.
