Over the past 24 hours, the cryptocurrency market experienced a significant liquidation event, wiping out more than $1.27 billion in leveraged futures positions. The sharp decline in Bitcoin’s price from $112,000 to below $106,000 on Monday triggered one of the largest waves of liquidations seen in recent weeks.
According to data from CoinGlass, long positions were hit the hardest, accounting for roughly 90% of the total liquidations. Approximately $1.14 billion in bullish bets were forcibly closed as prices retreated from their weekend highs. In contrast, short positions suffered around $128 million in liquidations.
Liquidations occur when traders who use borrowed funds to amplify their exposure fall below the required margin level. On crypto futures platforms, these liquidations happen automatically, where the exchange closes a trader’s position to cover losses when the market moves sharply against them. Such forced closures often contribute to increased price volatility in the affected markets.
The largest single liquidation during this period took place on HTX, where a long Bitcoin position worth nearly $34 million was liquidated. Hyperliquid led all exchanges in liquidation activity with $374 million in total forced closures. Of that sum, 98% were long positions. Bybit followed closely with $315 million liquidated, and Binance came in third at $250 million.
The sell-off was intensified by Bitcoin’s rejection above $113,000 and thin order books on major perpetual futures venues. The low liquidity environment amplified price swings, causing cascading liquidations during off-peak trading hours.
Such liquidation events often serve as short-term resets in overheated markets, clearing excessive leverage and providing an opportunity for spot buyers to re-enter. Despite this correction, open interest in crypto futures remains elevated at around $30 billion, and funding rates have only slightly eased. Market participants continue to brace for potential volatility ahead of an upcoming Federal Reserve rate decision scheduled later this week.
Beyond Bitcoin, Ethereum and Solana also experienced significant pressure, with their combined liquidations surpassing $300 million. Most altcoins followed suit, declining alongside the broader market amid reduced speculative activity.
