Crypto Carnage: $750M Wiped Out in 24 Hours as Bitcoin Shatters All-Time High

Leverage traders got steamrolled as BTC's historic rally triggered a brutal liquidation cascade.

Blood in the water—The crypto derivatives market saw its most violent flush since the 2021 bull run, with overleveraged positions getting liquidated at a rate of $31M per hour. All while Bitcoin cheerfully mooned to new record highs.

Short-sellers got rekt—As usual. The perpetual futures market became a battlefield of margin calls, with traders betting against BTC taking the heaviest losses. Some things never change—like crypto's ability to separate greedy degens from their capital.

Whales feast on wreckage—Market makers and OGs quietly scooped up collateral at fire-sale prices. Because nothing says 'free market' like profiting from others' liquidated dreams.

The irony? This liquidation storm might've actually stabilized the rally—nothing like a good old-fashioned flush to prevent unsustainable parabolic moves. Just don't tell that to the traders now staring at empty wallets.

Bonus jab: Traditional finance bros watching this unfold from their Bloomberg terminals probably muttered 'irrational exuberance' between sips of $8 artisanal coffee. Meanwhile, crypto natives shrugged and bought the dip—because volatility is just Tuesday in this market.

Bitcoin caused most of the losses. About $475 million was lost by people who bet that Bitcoin’s price WOULD drop, as it rose from $118,000 to over $122,000. One particularly large trade, a single short position worth nearly $100 million on Binance, was liquidated at a go.

The price climb began earlier in the week, when BTC moved past $112,000 and then $119,000 stages. The latest push past $121,000 sent market shockwaves through crypto platforms and futures markets.

Over 120,000 traders were hit by forced liquidations across all platforms, with short trades accounting for the lion’s share of losses. 

Market watchers attribute this momentum to institutional demand, rising ETF inflows, and growing confidence around U.S. crypto legislation; dubbed “Crypto Week”. Major spot Bitcoin ETFs drew billions in fresh funds this week, supporting the rally.

Some analysts believe bitcoin may now be set for a multi‑week uptrend. A break above $120,000 could open room toward $135,000–$140,000, though near‑term resistance remains just below that mark.

As BTC leads broader markets higher, altcoins like Ethereum, Solana, XRP and others have registered gains, though they remain behind Bitcoin’s pace.

The massive liquidations underscore the risk of leveraged trading and the swift impact of large price moves in crypto. Traders are now watching to see whether Bitcoin continues its uptick or starts dropping after the recent rise.

Also Read: Bitcoin and ethereum Spot ETFs See Strong Weekly Inflows