The crypto market is reeling once again after an intense wave of liquidations wiped out more than $2 billion in leveraged positions in a single day.
Related reading
With Bitcoin, Ethereum, Solana and other major assets plummeting in value, traders are preparing for what could be another turbulent stretch, especially as billions in options are about to expire.
ETH's price trends to the downside on the daily chart. Source: ETHUSD on Tradingview
Massive liquidations cause a steep sell-off
According to data from Mint glassMore than $2 billion in long and short positions were liquidated over the past 24 hours, marking one of the most serious events since October’s historic crash.
Bitcoin (BTC) crashed to a low of $82,000, while Ethereum (ETH) fell below $2,700. Traders with long positions bore the brunt of the damage, with more than $1.8 million in longs on the major exchanges wiped out.
The largest liquidation order occurred on Hyperliquid, where a huge BTC-USD position worth $36.78 million was wiped out. In the past 24 hours, Bitcoin long liquidations alone have generated approximately $966 million, while Ethereum long positions have also suffered approximately $407 million in losses.
With no details revealed about the specific tokens or exchanges involved, the incident still sent shockwaves through the community, further fueling bearish sentiment.
Option expirations and whale movements increase pressure on the market
The sell-off comes ahead of a crucial expiration of $4.2 billion worth of crypto options, with more than 39,000 BTC options and 185,000 ETH options set to expire.
Traders have leaned heavily on put positions, indicating further downside expectations. For Bitcointhe maximum pain point is around $98,000, well above current prices, while Ethereum is around $3,200.
Meanwhile, whale behavior has added fuel to the fire. A mega BTC whale that has owned Bitcoin since 2011 has reportedly sold more than 11,000 BTC, worth $1.3 billion, adding to the downward pressure.
At the same time, however, other large holders amassed more than $65 million in spot BTC near the $85,000 level, indicating strategic dip buying even as volatility spikes.
Vulnerable liquidity keeps the market on its toes
The instability of the market can be traced back to this The $19.5 billion liquidation in October event, which seriously disrupted liquidity conditions. Market makers, still recovering from the shock, remain cautious, creating a fragile environment where even small price swings can lead to back-to-back liquidations.
Despite the chaos, signs of resilience emerged from infrastructure players like Solana and Fireblocks, who maintained high transaction speeds and network reliability during periods of unprecedented stress.
Related reading
While macro uncertainty, ETF outflows and whale behavior continue to drive sentiment, the crypto market remains firmly on edge, with traders keeping a close eye on whether this correction deepens or paves the way for the next big recovery.
Cover image of ChatGPT, ETHUSD chart from Tradingview