Over $1 Billion Wiped Out as Crypto Traders Hit by Sudden Bitcoin Sell-Off
The cryptocurrency market just faced another rough 24 hours, with more than $1 billion in long positions completely wiped out as Bitcoin, Ethereum, and Solana plunged sharply. It’s one of those moments that reminds traders just how volatile this space can be.
So here’s what happened — Bitcoin’s price dropped suddenly from around $112,000 to below $106,000 , triggering a cascade of leveraged futures liquidations across multiple exchanges. In simple terms, when traders borrow money to bet that prices will go up, and the market suddenly drops, their positions get automatically closed out to prevent further losses. This time, that mechanism kicked in on a massive scale.
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According to CoinGlass data, around 90% of these liquidations were from long traders , meaning those who were betting on the market rising. In total, over $1.14 billion in bullish bets vanished overnight. The largest single liquidation came from the HTX exchange, where a $33.9 million Bitcoin long position was forcibly closed. Hyperliquid, one of the major derivatives platforms, led the liquidation charts with over $374 million in forced closures, followed by Bybit and Binance.
Ethereum and Solana weren’t spared either. Together, they saw more than $300 million in liquidations , as both coins tumbled—ETH dropping from around $3,700 to $3,500, and SOL plunging over 10%. This widespread sell-off erased roughly $100 billion in total crypto market value within just one day.
The reasons behind the sudden downturn seem to be a mix of macroeconomic worries and investor fear . U.S. Treasury Secretary Scott Bessent’s warning that high Federal Reserve interest rates could push parts of the economy into recession sent a wave of panic through markets. Risk assets like crypto are usually hit hardest during such times, and this was no exception.
Adding to that uncertainty were fresh rumors about the MEXC exchange , where users reported temporary withdrawal issues—though the platform later issued proof of reserves to calm nerves. Still, the timing of that scare didn’t help sentiment.
Institutional investors also seem to be pulling back. U.S. spot Bitcoin ETFs recorded $1.15 billion in outflows last week, with major firms like BlackRock and ARK Invest among those trimming exposure. This kind of selling pressure adds to the overall fragility of the market.
Despite the chaos, some traders see this as a potential “reset moment.” When leverage clears out of the system, the market often stabilizes and builds a base for recovery. Bitcoin has since rebounded slightly to above $107,000 , but volatility remains high, especially with key Federal Reserve meetings and U.S. jobs data coming up.
For now, it seems the crypto market is in a cautious, defensive mode — traders are scaling back risk, waiting for clearer signals before jumping back in. Whether this latest sell-off turns into an opportunity or a warning sign will depend on what happens next in the global economy.
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