Cryptocurrency markets experienced a significant wave of liquidations exceeding $2.22 billion over a 24-hour period, with Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE) among the most affected assets. This sell-off was sparked by Bitcoin’s price falling below the $104,000 mark, which triggered massive forced closures of long futures positions, totaling $688 million in liquidations as reported by CoinGlass and other sources.
The market downturn was further exacerbated by renewed geopolitical tensions, particularly the U.S. President’s decision to double tariffs to 50% on steel and aluminum imports from China amid accusations of trade deal violations. This move unsettled global trade markets and contributed to heightened volatility in crypto prices.
Trading platforms such as OKX, Binance, and Bybit saw substantial liquidation events, including a single largest liquidation order of $12.25 million on OKX for the BTC/USDT futures pair. Bitcoin futures alone accounted for over $153 million in losses, with Ethereum close behind at $122 million. Other notable liquidations included approximately $33 million for Solana (SOL), $30 million for XRP, and more than $22 million for Dogecoin.
Market data indicate that open interest in Bitcoin futures has surged by 51% since April, with a 126% increase in options activity, highlighting strong investor leverage and appetite. However, a shift by Bitcoin whales from accumulation to net selling suggests profit-taking and increased pressure on prices.
These liquidations have led to wider sell-offs—Ether dropped nearly 4%, XRP and Solana about 4-5%, and Dogecoin declined over 8% in the trading session. The liquidation event is likely to have short-term impacts on decentralized finance (DeFi) total value locked (TVL), prompting concerns over a potential decline in capital locked within DeFi protocols.
Analysts warn that such cascading liquidations often signal market extremes, potentially leading to near-term price reversals as sentiment adjusts. Meanwhile, the combination of geopolitical uncertainty and a jittery derivatives market suggests traders should brace for ongoing volatility and possible regulatory scrutiny on leverage and derivatives trading.