The crypto market experienced a sharp sell-off, pushing Bitcoin (BTC) back to October 2024 price levels near $65,000 and triggering a $2.6 billion market-wide liquidation. The move marked one of the largest liquidation events in crypto history, ranking among the top 10 ever recorded, according to Coinglass data.
The sell-off was driven largely by aggressive unwinding of long positions, as volatility surged across major cryptocurrencies.
📉 Bitcoin & Ethereum Lead the Liquidations
🔸 Bitcoin (BTC)
Price: $65,030
24h change: -9.25%
Total liquidations: $1.38 billion
Long liquidations: $1.16 billion
Short liquidations: $221.5 million
This shows the sell-off was heavily long-biased, as overleveraged bullish positions were flushed out. Retail sentiment on Stocktwits remained “extremely bearish”, while discussion volume stayed extremely high, signaling panic-driven activity.
🔸 Ethereum (ETH)
Price: $1,910
24h change: -10.33%
Total liquidations: $576.34 million
Long liquidations: $455.72 million
Short liquidations: $120.62 million
Ethereum continued to dominate long-side capitulation among major assets. Retail sentiment improved slightly from bearish to neutral, though chatter levels remained extremely elevated.
👉 Combined BTC + ETH deleveraging exceeded $1.95 billion, highlighting a broad derivatives reset.
⚡ Bitcoin Faces a Volatility Shock
Analysts described the move as a positioning reset, with options-driven “max pain” dynamics playing a growing role.
Bitcoin’s implied volatility spiked to 88%, an extremely rare level
Futures liquidations reached historic extremes
Analysts suggest BTC may now be at or near “max pain”, where forced selling begins to fade
Market watchers believe the sell-off may be shifting from a directional dump to a phase driven by options flows and volatility compression, especially if macro conditions stabilize.
VanEck’s Matthew Sigel highlighted that:
BTC futures open interest dropped from $61B to $49B in just one week
This represents a 20%+ reduction in leveraged exposure
As Bitcoin increasingly behaves like a settlement FX asset, higher open interest levels may become normal due to ETF options and basis trading
🔻 Losses Spill Over Into Altcoins
The liquidation cascade spread across the altcoin market as correlated positions unwound:
🔹 Solana (SOL)
Price: $76.54
24h change: -15.9%
Liquidations: $187M
Retail sentiment: Bullish, chatter surged sharply
🔹 XRP
Price: $1.27
24h change: -12.5%
Liquidations: $73.76M
Retail sentiment: Extremely bullish, chatter remained very high
🔹Binance Coin (BNB)
Price: $620.49
24h change: -10.6%
Liquidations: $13.1M
Retail sentiment: Bearish
🔹 Dogecoin (DOGE)
Price: $0.08
24h change: -12.7%
Liquidations: $23.87M
Retail sentiment: Bullish, chatter increased
🔹 TRON (TRX)
Price: $0.26
24h change: -4.1%
Liquidations: $177K
Retail sentiment: Bearish
🧠 Market Takeaway
📉 One of the largest liquidation events ever
🧹 Excess leverage has been aggressively flushed out
⚠️ Volatility remains elevated, but forced selling may be nearing exhaustion
🔄 Market could transition from panic selling to range-bound, options-driven trading
In short:
This was not just a price drop — it was a full market reset.
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