Crypto markets saw a sharp wave of liquidations over the last 24 hours, accelerating price declines across major tokens and pushing sentiment into extreme fear. Total market capitalization fell from roughly $2.59 trillion to $2.41 trillion, a 6.9% drop that erased nearly $180 billion in value in a single day.
Bitcoin, Ethereum, Solana, and several large and mid-cap tokens fell together, while CeFi-linked tokens were among the hardest hit. The primary reasons behind the slide was a result of a rapid unwinding of leveraged positions as prices broke key levels.As prices slipped, derivatives markets reacted first. Roughly $800 million worth of leveraged long positions were forcibly closed as exchanges liquidated traders who could no longer maintain margin. This cascade added mechanical selling pressure on top of an already cautious market.
At the same time, spot Bitcoin ETFs recorded nearly $270 million in outflows, weakening one of the key sources of structural demand. The broader risk-off tone in global equities and tech stocks sent a ripple effect into risk assets. As a result, crypto market sell-offs intensified during the past few days.
This is why the current move looks like a market-wide de-risking rather than a reaction to a single headline.
Why Crypto Is Liquidating Right Now
Three forces converged:
Macro risk-off sentiment spilling over from equities
ETF outflows reducing steady spot demand
High open interest in perpetual futures, meaning leverage had built up and was vulnerable
Open interest remains elevated, suggesting leverage is being reduced but not fully flushed yet.
Most Affected Crypto Assets
Bitcoin testing psychologically important zones near $70,000
Ethereum and Solana seeing broad declines in line with BTC
CeFi tokens under heavier pressure as traders cut exposure to exchange and lending narratives
Mid-caps and altcoins falling in tandem, showing the breadth of the move