Massive crypto liquidations lead to market volatility – What traders need to know now

The liquidation wave in the crypto market continues: in just 24 hours, positions worth over $1.1 billion were forcibly closed. This is a clear sign of the tense market situation and the increased volatility that investors currently have to deal with.

Numbers tell a clear story

CoinGlass data reveal the extent of the market strain: long positions valued at $1.08 billion were liquidated, indicating intense selling pressure. The biggest losers in this scenario were, as expected, the major altcoins and Bitcoin itself.

Bitcoin experienced a movement of +1.90% in 24 hours with a trading volume of $938.71 million. Ethereum followed with a gain of 0.88% and a volume of $461.09 million. Dogecoin also showed a moderate increase of 2.78%, although the volume was significantly lower at $27.05 million.

Institutional disinterest accelerates the decline

A particularly concerning aspect: Bitcoin ETF outflows in the past week amounted to $798.95 million. This signals a decline in institutional confidence and suggests that large players are reducing their positions.

Technical factors amplify the pressure

Analysts are observing weak technical indicators that point to a continued downward trend. The lack of a clear trigger for the liquidation cascade makes the situation especially tricky – it’s less a correction driven by external factors and more an endogenous market process where leverage trades and positions are liquidated in cascades.

For traders, this is a reminder to review risk management strategies and keep an eye on liquidation levels.