TL;DR
- A sudden wave of liquidations wiped out $288 million in crypto positions within just four hours, hitting Ethereum and XRP hardest.
- SOL and DOGE prices also dropped sharply, intensifying the market’s downturn.
- Traders in the USA and beyond are now rethinking leveraged strategies as altcoin volatility challenges recent gains and tests investor confidence during an increasingly cautious trading week.
Altcoin prices faced a brutal reality check this Wednesday when an unexpected selloff triggered massive liquidations across major tokens. In only four hours, $288.21 million in crypto positions vanished, with long trades accounting for nearly 90% of the total wiped out. Ethereum alone shed over $54 million, while XRP liquidations topped $41 million. Bitcoin weathered the storm better, losing around $19.58 million.
Current price data confirms the sting. Ethereum trades at $3,640.79, down 2.35% in the past 24 hours. XRP sits at $3.31, dropping 5.45%. Bitcoin holds at $118,390.61, slightly lower by 0.62%. Other popular altcoins also took hits: Solana is down 4.69% at $192.53, and Dogecoin fell hardest, slipping 6.99% to $0.2483. BNB defied the trend with a modest 2.04% gain to $785.80.
Traders On Edge As Leverage Unwinds
This round of liquidations reveals the thin margin leveraged traders operate on, especially in a climate where any shift in sentiment can flip the board overnight. Despite Ethereum and XRP notching strong weekly gains of 12.73% and 10.28%, the sudden correction showed how quickly profits can evaporate when risk is dialed too high.
Beyond ETH and XRP, the broader crypto scene mirrors the cooling trend. The global crypto market cap has slipped to $3.86 trillion, while 24-hour trading volume sank more than 13% to $191.24 billion. Altcoins like Cardano and TRON also felt the chill, with Cardano dropping 5.60% to $0.8312 and TRON slightly softer at $0.3126, down 0.34%.
Focus Shifts To Risk Management And Outlook
In the USA, this event sparked renewed debate about how sustainable high-leverage strategies really are. With traders facing over $507 million in total liquidations across 24 hours, many are now trimming risky bets or rotating capital to more stable plays like Bitcoin or even BNB.
While the recent downturn may prove temporary, the speed and scale of the selloff serve as a clear warning. Altcoins remain highly sensitive to shifts in sentiment and liquidity. For now, traders are watching whether this marks a deeper trend or just a healthy pause before the next leg up.
