Crypto Carnage: Traders Lose $827M in 24 Hours as Market Corrects

Blood in the streets—another brutal crypto shakeout claims nearly a billion in leveraged positions. The ’hedge against inflation’ narrative takes a gut punch as over-optimistic traders get liquidated en masse.

Who’s left holding the bag? Retail, as always. Meanwhile, institutional sharks circle below, waiting to scoop up discounted assets from panic sellers. Classic Wall Street playbook—just with more memecoins this time.

Silver lining? Volatility means opportunity for those with dry powder. The crypto casino stays open 24/7, and the house always wins.

In brief

• The crypto market experienced a major shock with over $827 million in positions liquidated within 24 hours, mainly on long positions.
• Bitcoin, Ethereum, and Dogecoin are among the most affected assets, with cumulative losses of hundreds of millions of dollars.
• The crypto downturn fits into a tense macroeconomic context marked by a disappointing GDP report in the United States and political tensions.
• This correction could have a dual effect: strengthening investors’ caution in the short term while cleansing the market for the future.

A hemorrhage in the crypto market : over $800 million liquidated

Is the Bitcoin bull run already over? This is the question many crypto investors are currently asking themselves.

In just 24 hours, the crypto market was shaken by a wave of liquidations of rare magnitude, totaling $827 million, mostly from long positions. Indeed, $747 million were liquidated on bullish bets, confirming a brutal overheating of expectations.

Optimistic traders betting on a future rise of cryptocurrencies mostly suffered heavy losses, as several major assets experienced a marked correction.

Here are the key figures to remember :

• Bitcoin (BTC) is the most affected crypto, with $222 million in positions liquidated. Its price briefly fell to $104,000, compared to a high of $111,814 the previous week ;
• Ethereum (ETH) follows, with $122 million in liquidations. Its price declined 3 % to $2,573 ;
• Dogecoin (DOGE) records the largest drop among the top 10, plunging 9 % below the symbolic $0.20 mark, a level not seen since May 8 ;
• Solana (SOL) and XRP complete the top 5 most impacted assets, with respective declines of 5 % and 3.3 %, reflecting a widespread market downturn ;
• The entire crypto market is down 4.3 % on the day, illustrating a clear decline in risk appetite.

This brutal correction comes amid high volatility, while markets seemed recently driven by a bullish momentum.

Leverage, widely used by traders, acted here as a catalyst for losses, precipitating a cascading liquidation of speculative positions.

A macroeconomic and political climate conducive to volatility

Beyond the sharp price adjustment, the causes of this retreat must also be sought in the global context. This crypto decline fits into a day of overall drops in traditional stock indices, following a disappointing GDP report in the United States.

At the same time, the US political climate remains tense, notably due to the ongoing legal battle over the legality of tariffs imposed during the TRUMP presidency. This increased uncertainty in traditional markets may have fueled growing nervousness in the crypto ecosystem, often considered a high-risk asset class.

This unstable atmosphere opened the door to corrections amplified by leverage. In a market note published Friday, Valentin Fournier, senior analyst at BRN, anticipates “a new phase of short-term weakness for Bitcoin”, even considering a temporary drop to the $100,000 level before a potential rebound toward $130,000 to $150,000.

He specifies: “we anticipate a temporary drop toward the $100,000 threshold, followed by a broader movement toward $130,000 to $150,000, after which altcoins could take over”.

These remarks reflect a broader view of the current cycle, where a short-term consolidation WOULD be the prelude to a new upward momentum.

In this perspective, the consequences of this sequence could be twofold. In the short term, increased caution, or even a partial withdrawal of speculative capital, could weigh on market liquidity. However, in the medium term, if the rebound scenario materializes, this purge could prove beneficial to cleanse the market. Especially as the excess Optimism observed in recent weeks had weakened positions. It remains to be seen whether the crypto market will be able to turn this sharp correction into an opportunity for consolidation before a possible new bullish phase.

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