Bitcoin’s sharp decline from $112,000 to below $106,000 on Monday triggered one of the biggest liquidation waves in weeks, wiping out more than $1.27 billion in leveraged futures positions across crypto markets.
Data from CoinGlass shows that long traders accounted for nearly 90% of total liquidations, with more than $1.14 billion in bullish bets wiped out as prices fell from weekend highs. Short films accounted for only $128 million of the total.
Liquidations occur when traders using borrowed funds are forced to close their positions because their margin falls below required levels. On crypto futures exchanges, this process is automatic, because when prices move sharply relative to a leveraged trade, the platform sells the position on the open market to cover losses.
Large groups of long liquidations can signal capitulation and potential short-term bottoms, while large short-term wipeouts can precede local tops as momentum reverses. Traders can also track where liquidation levels are concentrated, helping to identify areas of forced activity that may act as short-term support or resistance.
The largest liquidation took place on HTX, where a long BTC-USDT position of $33.95 million was closed.
Hyperliquide led all platforms in terms of overall activity, recording $374 million in forced closures – 98% of which were long positions – followed by Bybit with $315 million and Binance with $250 million.
This surge occurred after Bitcoin’s latest rejection above $113,000 and against a backdrop of tight order books at major perpetual sites, amplifying price swings as cascading liquidations occurred during low liquidity hours.
Such events typically mark short-term “moments of balance” in overheated markets, where leverage resets and cash buyers gradually return.
Still, with open interest remaining near $30 billion and funding rates falling only slightly, traders appear wary of further volatility ahead of the Federal Reserve’s rate decision later this week.
Ethereum and Solana saw similar pressure, with combined liquidations exceeding $300 million, while most altcoins fell amid diminishing speculative appetite.
