TL;DR
- Crypto markets experienced over $1.1 billion in liquidations in just 24 hours, driven primarily by long positions.
- More than 246,000 traders were forced out, leading analysts to compare the stress to the FTX collapse in 2022.
- Experts remain divided on whether this event signals a deeper bear market or a sharp, short-term correction, highlighting mixed investor sentiment and ongoing market volatility.
The cryptocurrency market saw liquidations exceeding $1.1 billion over the past 24 hours, with long positions accounting for $968 million of the total. The rapid sell-off affected more than 246,000 traders and drew immediate comparisons to the 2022 FTX collapse.
Liquidation Wave Hits Major Crypto Exchanges
The largest single loss came from a $44.29 million BTC-USDT position on HTX, while Hyperliquid and Bybit recorded $134.16 million and $122.57 million in long liquidations over a four-hour period. Liquidations occur when leveraged positions are automatically closed due to insufficient margin, often intensifying price swings.
A strong skew toward long liquidations indicates traders had been optimistic about the market before the reversal. While significant, this episode does not rank among the ten largest liquidations, with the record set at $19.16 billion in October 2025 following the US-China tariff announcement. Technical indicators for Bitcoin suggest caution, with analysts debating whether this signals the start of a bear market or a temporary pullback.
Sentiment Plummets To FTX-Era Lows
Analyst Negentropic noted parallels with the FTX crisis, pointing out Bitcoin’s Relative Strength Index (RSI) now sits in extremely oversold territory, a level not seen since 2022. Additionally, the asset has dropped below its lower volatility band, suggesting heightened market stress.
The 2022 FTX collapse led to widespread losses and diminished confidence, with major players liquidating assets and Bitcoin prices plunging. Today, while prices have declined and liquidity is strained, the overall infrastructure of exchanges and the crypto ecosystem remains intact.
Experts Offer Diverging Market Outlooks
Some analysts emphasize that this event does not yet confirm a new bear market. CryptoQuant CEO Ki Young Ju noted that Bitcoin holders’ average cost basis in the past 6 to 12 months remains near $94,000. Unless prices drop below this level, the weakness may be considered a correction rather than a long-term downtrend.
Haseeb Qureshi of DragonFly Capital highlighted that losses now are mainly due to falling prices rather than systemic failures seen in 2022. Divergent views reflect uncertainty, but the underlying crypto infrastructure appears more resilient, signaling potential stability even amid short-term volatility.
