$900M Crypto Liquidation Tsunami Wreaks Havoc—ETH Takes Brutal $500M Hit
A staggering $900 million liquidation wave just vaporized trader positions across crypto markets—the largest single-day flush since the 2022 bear cycle.
Ethereum bled hardest: $500 million in long positions evaporated in under 24 hours as ETH nosedived toward critical support. Leveraged traders got rekt chasing momentum—classic case of greed outpacing risk management.
Altcoins didn’t escape the carnage. Major tokens like Solana and BNB saw cascading liquidations as stop-losses triggered domino-style selloffs. The entire derivatives market felt the squeeze—funding rates flipped negative faster than a degenerate deletes their trading app.
This wasn’t just a correction—it was a full-scale leverage reset. Exchanges liquidated over-leveraged positions like clockwork, proving once again that crypto markets eat greed for breakfast. And Wall Street wonders why we’re still called ‘volatile’—maybe if they tried risk management beyond yacht purchases, they’d get it.
Remember: markets don’t owe you anything—especially not your leverage. Trade accordingly.
Altcoin hype fades as ETH retreats from $5K
The ongoing turbulence left traders guessing as crypto liquidations inched towards the $1 billion mark. More than $758 million (86%) turned out to be long positions. This suggests that traders were expecting a rebound rally after the recent drop.
Meanwhile, the digital assets market printed red indexes all the way around. The Fear and Greed index remained in the “Neutral” zone but is tilting close to the fear territory.
The top 10 cryptos saw a halt in bullish sentiments, and the rest of the market reacted. Solana price dropped by over 4% in the last 24 hours. Solana ecosystem tokens followed it. Pudgy Penguins (PENGU) and Bonk prices fell by almost 4%. PENGU and BONK have already been running down by 30% and 42%, respectively, over the past 30 days. DefiLlama data shows that Solana’s total value locked (TVL) slipped by 6% in a day to stand at $10.66 billion.
Ethereum sprinted toward $5,000 last week, lifting the sentiments of altcoin season among investors. Meanwhile, enthusiasm seems to be fading now as the crypto market mirrors a dip in the S&P 500, as macro continues to dictate the tempo. ETH is trading at an average price of $4,415 at the press time. Data shows that Ether’s TVL is down by 3.63% over the last day to stand at $92.02 billion.
Bitcoin momentum fades
As per a Glassnode report, Bitcoin spot market momentum weakened as the RSI slipped toward oversold conditions over the past week. Futures OI shrank 2.6% to $45.9 billion as leverage unwound, while options skew spiked to 8.2%. This signals rising demand for downside hedges as ETF flows also went on to hit $1 billion outflow.
It added that on-chain indicators reflect softer demand as active addresses fell 2% to 692k. Fees are down by 17% which hints at less blockspace demand. Bitcoin price is down by 5% over the past 7 days. BTC is trading at an average price of $109,728 at the press time.
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