Yeliz Akmaca 
Crypto markets entered the new week under heavy pressure as leveraged positions unraveled at scale. Over the past 24 hours, forced liquidations swept through derivatives markets, dragging both prices and sentiment lower. According to CoinGlass data, total liquidations reached $871 million, directly impacting nearly 248,900 traders.
The scale of the move exposed how fragile positioning had become. As global risk appetite weakened, crypto markets were already carrying elevated leverage. Once selling began, long positions were rapidly flushed out, triggering a cascade of liquidations across major exchanges.
Leverage Build-Up Failed to Hold
Losses were overwhelmingly concentrated on the bullish side. Roughly $788.34 million in long positions were wiped out, underscoring how heavily traders were positioned for further upside. Even modest price pullbacks proved sufficient to destabilize this imbalance.
Over the same period, total crypto market capitalization slid by nearly 3%, falling to around $3.2 trillion. The decline reflected not just spot selling, but the mechanical impact of forced position closures in derivatives markets.
The largest single liquidation occurred on Hyperliquid, where a BTC-USDT position worth $25.83 million was closed out. The trade became a clear example of how quickly margin can evaporate when volatility accelerates.
Bitcoin and Ethereum at the Center of the Sell-Off
Bitcoin dropped from above $95,000 to the $92,000 area, resulting in approximately $229 million in Bitcoin liquidations. Ethereum followed a similar path, with liquidation losses totaling $153 million.
Once again, individual large positions amplified market stress. The Hyperliquid BTC-USDT loss stood out, reinforcing concerns around concentrated leverage and thin buffers in high-risk environments.
Geopolitical Pressure Distorts Risk Sentiment
Technical factors were not the sole driver behind the move. As the new week began, geopolitical tensions added another layer of uncertainty. President Donald Trump’s comments targeting Denmark and several European allies over Greenland disrupted broader market confidence.
Trump announced plans for a 10% tariff set to take effect in February, with the possibility of escalation to 25% by June if negotiations fail. He argued that these countries have long benefited from U.S. protection while resisting Washington’s strategic priorities.
The administration has framed Greenland as critical to countering growing foreign influence and supporting the proposed “Golden Dome” missile defense system, shifting the issue beyond trade and into national security territory.
Market Fragility Has Not Fully Cleared
The liquidation wave highlighted how quickly excessive leverage can unwind. However, it remains too early to conclude that risk has been fully flushed from the system. Open interest remains elevated in parts of the derivatives market.
Each new price test is likely to reveal where leverage is rebuilding and which side of the market remains vulnerable. For now, volatility continues to dictate the pace.
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