The cryptocurrency market faced a sharp sell-off over the past 24 hours, triggering liquidations worth $1.76 billion across 583,810 traders. This marks one of the largest liquidation events since 2021, driven by sudden price drops in Bitcoin and altcoins.

Massive Liquidations Crashed Crypto Market

Bitcoin, the largest cryptocurrency, led the downturn, plunging to an intraday low of $94,129 before partially recovering to trade around $97,000. This price drop caused liquidations totalling $189.19 million, with $147.95 million coming from long positions and $41.23 million from short positions.

The ripple effect extended across the market as leveraged positions were wiped out. Long traders bore the brunt of the losses, accounting for $1.58 billion of the $1.76 billion liquidated, while short traders faced $184.51 million in liquidations.

However, some analysts point to a mix of over-leveraged positions, weak market sentiment, and cascading stop-loss orders as the primary drivers of this sharp decline. As Bitcoin’s price fell below critical levels, it sparked a chain reaction, wiping out billions across the market.

Altcoins Take a Heavy Hit

The sell-off wasn’t limited to Bitcoin. Major altcoins like Ethereum (ETH), Solana (SOL), XRP, and Dogecoin (DOGE) saw price declines ranging from 8% to 13%.

Ethereum witnessed one of the largest individual liquidation orders on Binance, valued at $19.69 million on its ETH/USDT trading pair.

Altcoin liquidations reached $563.25 million, with $537.43 million coming from long positions, highlighting the over-leveraged state of the market.

Crypto Index In Greed

Interestingly, despite the massive liquidations, the Crypto Fear and Greed Index remains at a surprising 78, indicating “Extreme Greed.” This suggests traders remain optimistic about a potential recovery despite the recent volatility.

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