Crypto Liquidations Hit $1.1B as Sentiment Slides into Fear
Crypto markets saw a sharp leverage-driven reset, with $1.1B wiped out in futures liquidations. Bitcoin and Ethereum dominated the selloff: $780M in $BTC and $414M in $ETH were forcibly closed, making up nearly 70% of total liquidations. Two-thirds of losses came from overcrowded long positions, highlighting how bullish leverage had become after weeks of low volatility.
Altcoins weren’t spared, with high-beta and mid-cap tokens accounting for roughly a third of liquidation volume, often amplified by thin liquidity rather than fundamental weakness.
The liquidation wave coincided with sentiment deterioration: the Crypto Fear & Greed Index dropped to 28 (“Fear”), reflecting defensive positioning as traders reacted to forced closures.
Markets are now recalibrating - futures open interest has cooled, leverage is down, and volatility remains elevated. Historically, such events precede range-bound trading, with future trends dependent on real spot demand, not speculative leverage.