Altcoin Traders Hit Hard as $735M in Crypto Positions Liquidated
A sudden drop in crypto prices on Tuesday triggered over $735 million in liquidations across the market, with Ether (ETH) and XRP traders absorbing the largest losses — outpacing Bitcoin for the day.
According to data from CoinGlass, ETH futures saw $152.78 million in liquidations, followed by $88.58 million for XRP. Bitcoin (BTC), despite its dominant market cap and deeper liquidity, saw a more modest $65.29 million in liquidated positions.
This wave of losses reflects the elevated leverage among altcoin traders, many of whom were positioned for continued upside after weeks of bullish momentum. In total, $625.5 million of the liquidations came from long positions — a sign that many traders were caught off guard by the reversal.
Other major tokens also saw sharp liquidations:
- Solana (SOL): $41 million
- Dogecoin (DOGE): $40 million
- DeFi tokens like SPK and PUMP each saw over $10 million wiped out
The pullback occurred despite no clear macro or industry-specific catalyst, though some analysts pointed to profit-taking near key resistance levels. ETH had recently approached $4,000, while BTC had tested $118,000, both of which sparked selling pressure from larger wallets.
At current levels:
- ETH is down 3.6%, trading near $3,540
- XRP fell 6% to $3.25, bringing its weekly decline above 12%
- BTC remains more resilient, down just under 2% to around $116,800
Crypto liquidations happen when leveraged positions are forcibly closed due to a price move beyond a trader’s margin threshold. This can trigger cascading effects during volatile market conditions.
Analysts often monitor liquidation spikes as sentiment indicators. Large long-side liquidations can signal capitulation and a potential bottom, while short-side liquidations may precede price squeezes. When paired with funding rate and open interest data, liquidation trends offer key insights into trader positioning and potential market turns — especially in environments where leverage plays a central role.
