TL;DR
- The crypto market liquidated nearly $247 million in a single hour, with $207 million coming from shorts and $40 million from longs.
- Ethereum led the adjustment with over $147 million in liquidations, far exceeding Bitcoin’s $42.8 million; Solana and XRP recorded $11 million and $5.6 million, respectively.
- Daily trading volume rose 15% to $189.7 billion, showing that volatility attracted more activity while a short squeeze keeps upward pressure alive.
During the last session, the cryptocurrency market experienced a period of heightened volatility that wiped out almost $247 million in leveraged positions. The scale of the adjustment was remarkable, especially as it occurred alongside a recovery in total market capitalization, which reached $3.97 trillion following a broad rally.
The heaviest impact fell on short positions, which accounted for $207 million of the total losses. Traders betting on a downward move failed to maintain their positions against the sudden price surge. In contrast, long positions lost around $40 million, a smaller figure but one that reflects that the correction affected both sides of the market.
Ethereum was at the center of the adjustment. More than $147 million linked to ETH was erased within minutes, a figure that tripled Bitcoin’s losses of approximately $42.8 million. The scale of the impact on ETH highlights that bullish momentum around the token was decisive in triggering the wave of liquidations.
Other market assets were also affected. Solana saw liquidations close to $11 million, and XRP surpassed $5.6 million. Although these amounts are much smaller compared to Ethereum, they indicate that the adjustment extended across major cryptocurrencies.
Poor Market Rebound Calculation
While the liquidation data painted a heatmap dominated by red, 24-hour trading volume surged 15% to $189.7 billion. This rise shows that volatility did not drive participants away but instead attracted more activity. Higher engagement reflects attempts to capitalize on abrupt price swings that create fast entry and exit opportunities.
The observed pattern clearly shows that bears misjudged the strength of the rebound. The market responded with a short squeeze dynamic that may not yet be over. If momentum continues, further forced position closures could intensify the rally and sustain the ongoing bullish trend.
