Ether and bitcoin led a broad wave of liquidations as prices declined amid mounting macroeconomic concerns, delivering the sharpest blow to bullish traders in more than three months.
Crypto markets came under pressure as leading assets bitcoin (BTC) and ether (ETH) slid on the back of rising global macro risks. Over the past 24 hours, exchanges wiped out $563 million in leveraged long positions in the futures market, marking the largest single-day liquidation event since Feb. 6, when bitcoin plunged toward $60,000 and triggered $1.84 billion in bullish liquidations, according to Coinglass data.
In contrast, liquidations of short positions totaled just $65 million, underscoring heavily skewed bullish positioning heading into the downturn.
Ether, the second-largest cryptocurrency by market capitalization, absorbed the bulk of the losses, accounting for $244 million in long liquidations. Bitcoin followed with $160 million, with the two assets together representing the majority of the market-wide deleveraging.
Liquidations occur when traders’ collateral can no longer sustain mounting losses on leveraged futures positions. While leverage amplifies gains when markets move favorably, it also accelerates losses when prices reverse, often forcing exchanges to automatically close positions.
That dynamic played out across the market as declining prices in bitcoin and ether triggered a cascade of long liquidations, dragging the broader crypto complex lower.
Bitcoin has fallen roughly 5% over the past week to around $77,000, while ether dropped 10% to trade near $2,129 at the time of writing, based on CoinDesk data.
The sell-off appears tied to hotter-than-expected U.S. inflation data released last week, which pushed Treasury yields higher. Rising yields globally have weighed on investor appetite for risk assets, particularly non-yielding assets such as cryptocurrencies.
The macro-driven weakness comes despite ongoing regulatory progress in the U.S., where the Clarity Act — a long-anticipated bill aimed at establishing a comprehensive digital asset framework — recently advanced through the Senate Banking Committee.
The episode highlights how broader macroeconomic forces can overshadow crypto-specific catalysts. While regulatory developments may support long-term adoption, they offer limited protection against rising yields and inflation concerns that continue to pressure risk sentiment across global markets.
