A sharp pullback across crypto markets on Tuesday triggered nearly $735 million in liquidations, with bulls bearing the brunt.
Ether (ETH) and XRP tracked futures bets, booking larger losses than Bitcoin in an unusual move that indicates higher interest from altcoin traders in the past week.
CoinGlass data shows ETH traders lost $152.78 million, the largest for any asset. XRP followed with $88.58 million in liquidations. Bitcoin came in third at $65.29 million, despite its larger market cap and deeper liquidity.
While price action across the majors was mostly down by only a few percentage points, the high leverage retail traders used in altcoins likely amplified their losses. In total, long positions accounted for $625.5 million of the liquidations, suggesting the selloff caught many bulls off guard after weeks of upward momentum.
Solana’s SOL lost $41 million, dogecoin (DOGE) shed $40 million, and smaller DeFi tokens like SPK and PUMP saw over $10 million in positions wiped out.
As of writing, ETH is down roughly 3.6% on the day to trade near $3,540, while XRP fell 6% to $3.25, extending its weekly loss to over 12%. Bitcoin fared better, slipping just under 2% to hover around $116,800.
Crypto liquidations occur when leveraged positions are forcibly closed due to a price move beyond a trader’s margin threshold. This typically results in major losses and can trigger cascade effects during volatile moves.
Traders utilize liquidation data to assess market sentiment and positioning. Large long liquidations often indicate panic bottoms, while short liquidations may precede a squeeze.
Spikes in liquidations help show crowded trades and possible reversals. When used with open interest and funding rate data, liquidation numbers can offer smart times to buy or sell, particularly in markets with too much leverage that might see quick drops or rises.
