$300M Wiped Out in 4 Hours: Bitcoin & Ethereum Plunge Triggers Mass Liquidation Carnage

Crypto markets just got gut-punched—hard. A violent selloff slammed Bitcoin and Ethereum, vaporizing $300 million from leveraged traders in under four hours. The liquidation bloodbath left overextended positions in tatters.

When the dominos fall, they fall fast

Leverage works both ways—until it doesn't. The cascade of liquidations accelerated the price drop, creating a self-reinforcing spiral. Exchanges automatically dumped collateral as prices breached critical levels, adding fuel to the fire.

The great crypto reset continues

Volatility isn't a bug—it's a feature. This latest shakeout proves crypto markets remain the Wild West of finance, where fortunes vanish faster than a meme coin's utility. Traders: maybe ease up on the 100x leverage? Just a thought.

This data reveals that a vast majority of the liquidated positions were Leveraged long bets, meaning traders were betting on continued price increases. As prices tumbled, long positions were automatically closed by exchanges on stop-loss (SL) orders or on liquidation prices for respective traders, creating a cascading effect that accelerated the market’s descent. 

In the past 4 hours, ethereum long positions accounted for a significant portion of the losses, which are usually dominated by Bitcoin. The significant sell-off, which began during midday US trading hours, saw Bitcoin briefly dip to $102,400 on leading exchanges, while Ethereum followed suit with a more substantial drop of over 4% to $2,380 hours ago. 

Market analysts point to a confluence of factors contributing to the volatility, including mounting geopolitical tensions in the Middle East and lingering macroeconomic uncertainties. Reports suggest that initial panic was exacerbated by threats of new tariffs from Donald Trump, which sparked a broader “risk-off” sentiment across global financial markets, with cryptocurrencies bearing the brunt.

While some market participants express concern about the immediate future, others view this as a necessary deleveraging event, potentially paving the way for healthier market growth. However, the current liquidation data underscores inherent risks associated with leveraged trading in volatile cryptocurrency markets where traders take huge losses. 

Also read: Why Is Ethereum Falling Today? Top 3 Reasons