Over $1 Billion Vanishes: Crypto Market Hit by Sudden Liquidation Wave

• Over $1 billion in leveraged long positions were wiped out in just one hour, causing significant market disruption.
• Bitcoin and Ethereum led the crash, with long traders absorbing more than 95% of liquidations.
• High volatility and margin calls underscore that while crypto offers big rewards, the risks remain equally steep.

The cryptocurrency market took a brutal hit today, with over $1 billion in leveraged long positions wiped out in just one hour. Bitcoin and Ethereum led the plunge, sparking panic across exchanges. The liquidation chart tells the story: steady activity through the day, then a towering green spike marking the $1 billion flush. Bitcoin’s sharp drop is shown by the yellow line, showing how forced selling triggered the crash.

Source: Coinglass

$1B Flash Wipeout Sends Crypto Market Reeling

Unlike previous selloffs driven by hacks or whale moves, this wipeout was fueled by macro pressures and leverage mismanagement. This raises interest rates & inflation fears, safer assets like bonds and treasuries suddenly look more attractive, pulling money out of riskier bets like crypto.

Too much leverage caused a chain reaction of margin calls, which led to more liquidations and sped up Bitcoin’s drop. Bitcoin’s price plunged sharply to around $112,000, with high trading volume and momentum indicators signalling strong bearish pressure.

Source: TradingView

According to data from TradingView, Bitcoin’s chart tells the story in real time. As prices plunged toward $112,000, a massive red candle sliced through the 50-day moving average. It is clear evidence of panic selling. Volume surged as liquidations kicked in, and momentum indicators like RSI dropped sharply, reflecting not just technical weakness but shaken confidence across the market.

ETH and BTC Lead Long Liquidations

Today’s meltdown echoes previous flash crashes. In February 2025, over $2.2 billion in long positions were liquidated within a single day after the Trump administration’s surprise tariffs rocked global markets. Looking back to previous performances, long traders tend to absorb the heaviest losses. The aggressive leverage leaves them vulnerable to even small pullbacks.

According to data curated by Coinglass, this time was no different; more than 95% of liquidations came from longs. Long traders bore the brunt of today’s Wipeout, with ETH and BTC leading losses.

Source: Coinglass

Also Read: Inside Today’s Crypto Market: What Went Down in the Crypto Market?

Crypto Market Insight: High Risks, Uncertain Moves

Market sentiment is still on shaky ground. With central banks hinting at tighter policies ahead, traders are treading carefully, unsure of what’s next. Volatility isn’t going anywhere. For now, this crash serves as a stark reminder: crypto may offer big rewards, but it comes with equally big risks..

According to a recent post on X by MerlijnTrader, Bitcoin appears to be retracing the infamous 2017 crash. It is not just in charts, but in sentiment too. After reaching highs, the market went through a period of hesitation and panic, and now seems to be hitting a low point. With $1 billion wiped out in just an hour, it seems like history’s “final flush” is playing out again. Whether the past truly repeats or simply rhymes, the fear is tangible, and so are the losses.

Today’s $1 billion wipeout shows just how fast the crypto market can turn. Bitcoin and Ethereum led the losses, proving that leverage can amplify panic in minutes. The market’s emotional swings echo past crashes like 2017, reminding traders that while crypto can offer big rewards, it carries equally big risks. Managing risk remains more important than chasing gains.

Also Read: XRP, BNB, & Dogecoin Dominate as Explosive Trending Coins While Crypto Market Heats Up