Bitcoin’s sharp drop from $112,000 to below $106,000 on Monday triggered one of the biggest waves of liquidation 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. Shorts 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 the required level. On crypto futures exchanges, this process is automatic, as when prices move strongly towards a leveraged trade, the platform sells the position to the open market to cover losses.
Large clusters of long liquidations can signal capitulation and potential near-term bottoms, while heavy short wipeouts can precede local tops when momentum flips. Traders can also keep track of where liquidation levels are concentrated, helping to identify zones of forced activity that can act as short-term support or resistance.
The largest single liquidation occurred on HTX, where a $33.95 million BTC-USDT long was closed.
Hyperliquid led all platforms in overall activity, recording $374 million in forced closes – 98% of which were longs – followed by Bybit at $315 million and Binance at $250 million.
The flush came after Bitcoin’s recent rejection above $113,000 and amid thin order books across major perpetual venues, amplifying price volatility as cascading liquidations hit during hours of thin liquidity.
Such events typically mark short-term “clearing moments” in overheated markets, where leverage resets and spot buyers gradually re-enter.
Still, with open interest remaining close to $30 billion and funding rates falling only slightly, traders appear wary of further volatility ahead of the Federal Reserve’s interest rate decision later this week.
Ethereum and Solana saw similar pressure, with combined liquidations topping $300 million, while most altcoins trailed lower amid waning speculative appetite.
