Cryptocurrencies Sink as $1.5 Billion in Bullish Bets Wiped Out
Major cryptocurrencies tumbled on Monday after a wave of liquidations shook the market. More than $1.5 billion worth of bullish leveraged positions were wiped out across derivatives platforms, triggering forced closures of long bets. The cascade intensified selling pressure, sending shockwaves through digital asset markets and magnifying downside moves.
Bitcoin briefly dropped toward $112,000, while Ether slipped to nearly $4,075 during the rout. The combined value of all digital assets also fell under the $4 trillion mark before finding some stability. Despite the sharp decline, traders are watching whether this correction signals deeper weakness or a temporary shakeout after weeks of optimism. Bloomberg+1
What drove the crypto liquidations $1.5 billion wave?
Data compiled from derivatives platforms showed a concentrated flush of long positions, with ~407,000 accounts liquidated over 24 hours. The pressure was most acute in ETH futures, where nearly $0.5B in longs were unwound as price swept through stops. BTC fell about 3% at the lows. Such long-wipeouts often accelerate as margin thresholds are breached and collateral is sold.
Market breadth and capitalization
The selloff hit smaller tokens hardest, widening underperformance versus Bitcoin. Aggregate market capitalization briefly fell below $4T intraday, according to market trackers, before a modest rebound into the close. Real-time dashboards later showed the total cap hovering around the $4.0T mark.
Price levels that fueled the crypto liquidations $1.5 billion
Intraday BTC swings around $112K–$116K and ETH’s drop toward $4.1K aligned with regions of concentrated leverage evident on public liquidation maps (e.g., CoinGlass), where clustered stop-outs can amplify volatility during thin liquidity. (Methodology reference.)
How the majors traded
Bitcoin (BTC)
Lows near $111,998 during the flush; later steadied around the mid-$110Ks.Ether (ETH)
9% at worst to $4,075, leading losses as concentrated longs were cleared.Market cap
Dipped < $4T intraday before a modest rebound toward ~$4.0T.
<section id=”howto”> <h3>How to monitor liquidation risk during volatile crypto sessions</h3> <ol> <li id=”step1″><strong>Step 1:</strong> Check real-time liquidation dashboards (e.g., CoinGlass “Liquidations”) for 1h/4h/24h totals.</li> <li id=”step2″><strong>Step 2:</strong> Review liquidation heatmaps to spot clustered levels that may trigger cascades.</li> <li id=”step3″><strong>Step 3:</strong> Track funding rates and open interest for signs of crowded leverage.</li> <li id=”step4″><strong>Step 4:</strong> Set alerts around key spot/perp levels and use conservative leverage or hedges.</li> <li id=”step5″><strong>Step 5:</strong> Reassess stops and collateral when volatility and spreads expand.</li> </ol> <p><em>Note: Process may vary by provider/exchange. Confirm requirements before acting.</em></p> </section>
Analysis
Leverage-driven swings remain a defining feature of crypto. When spot momentum falters, elevated open interest and tight stop clusters can convert modest dips into outsized liquidations particularly in altcoins where depth is thinner. Monday’s washout follows a period of relative stability and underscores how swiftly positioning can reverse.
Conclusion
Monday’s selloff was intensified by high leverage, with Ethereum facing the sharpest pressure among major tokens. The market’s next move will depend on whether liquidity returns around critical thresholds, particularly near $115,000 for Bitcoin and $4,200 for Ether, as well as broader investor sentiment.
For a more durable rebound, conditions must stabilize. That includes a slowdown in liquidations, funding rates moving back to normal ranges, and renewed spot market demand. Until those elements align, volatility is likely to remain elevated, leaving traders cautious ahead of upcoming macro events that could further influence risk appetite.
FAQs
Q : What caused today’s crypto drop?
A : A cascade of forced long position closures (“liquidations”) totaling about $1.5B amplified selling.
Q : How low did Bitcoin and Ether go?
A : BTC touched ~$111,998; ETH fell as much as 9% to ~$4,075.
Q : Did the total market cap fall below $4T?
A : Yes, briefly, before rebounding toward the $4.0T area.
Q : Which tokens were hit hardest?
A : Smaller altcoins generally underperformed during the liquidation wave.
Q : Where can I track liquidations in real time?
A : Public dashboards like CoinGlass show 1h/4h/24h liquidation totals and heatmaps.
Q : What does “liquidation” mean in crypto?
A : It’s a forced close of a leveraged position when margin falls below maintenance levels. (Methodology reference.)
Q : Does this mean the rally is over?
A : Not necessarily; clean-ups of leverage can reset positioning. Watch funding, OI, and spot demand.
Q : Is “crypto liquidations $1.5 billion” the final number?
A : Figures are dynamic and may be revised as data providers update.