Crypto Market Turmoil- $1B Liquidated as Bitcoin Falls, Ether Drops Most Since 2021
Crypto Market Turmoil- Crypto-tracked futures saw over $1 billion in liquidations within the last 24 hours as the market sell-off deepened on Sunday. This market turmoil was sparked by a stronger Japanese yen and rumors that market maker Jump Trading was exiting its crypto business.
Ether (ETH) futures accounted for over $340 million of the liquidations, with bitcoin futures leading the losses at $420 million. Futures linked to Solana’s SOL, dogecoin (DOGE), xrp (XRP), and pepe (PEPE) collectively faced $75 million in liquidations. In total, over 275,000 individual traders were liquidated, with the largest single liquidation order occurring on crypto exchange Huobi—a BTC/USD trade valued at $27 million. Notably, around 87% of all traders affected were long traders, who had bet on rising prices.
The liquidations followed a significant drop in bitcoin (BTC), which fell more than 11% over 24 hours. Ether saw an even sharper decline, plunging as much as 25% before a slight recovery. According to TradingView data, this was the worst single-day price drop for ETH since May 2021, when prices plummeted from over $3,500 to $1,700. TradingView’s daily candle measures performance from UTC 00:00 to 23:59.
The sharp decline caused the popular crypto fear and greed sentiment index to signal fear, reaching its lowest level since early July. This index monitors volatility, prices, and social media data to gauge whether market participants are fearful—often indicating a local bottom—or greedy, which typically marks market tops.
Liquidations occur when an exchange forcefully closes a trader’s leveraged position due to a partial or total loss of the trader’s initial margin. This happens when a trader is unable to meet the margin requirements for a leveraged position, meaning they don’t have sufficient funds to keep the trade open.
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