The largest single liquidation occurred on the Hyperliquid exchange in the BTC-USD pair, amounting to $6.31 million. This data highlights once again the risks associated with high-leverage trading in the Bitcoin market.

Ethereum and Bitcoin Lead Liquidations

Ethereum (ETH) positions saw $50.04 million in liquidations, while Bitcoin (BTC) positions accounted for $26.14 million. These two major cryptocurrencies made up the bulk of total liquidations. Additionally, Solana (SOL) recorded $18.77 million, and BNB had $4.51 million in liquidations, drawing attention in the market.

Crypto liquidation data shows that the market is vulnerable to sudden price movements. Leveraged trades in the altcoin market, in particular, have contributed significantly to these liquidations.

Long Positions Under Pressure

The liquidation ratio in long positions reached 73%. In the last four hours, $302.61 million was liquidated, with $220.89 million coming from long positions and $81.72 million from short positions. This indicates that price corrections are primarily targeting leveraged long positions.

A “long squeeze” effect has been observed among investors, and some market analysts suggest this may result in a short-term consolidation in Bitcoin prices.

Hyperliquid and Bybit Top Exchanges in Liquidations

The largest liquidation volumes among exchanges were observed on Hyperliquid:

• Hyperliquid: $128.68M → 54.7% short-heavy

• Bybit: $59.43M → 97.1% long-heavy

• Binance: $56.13M → 92.6% long-heavy

• Gate.io: $23.97M → 97.1% long-heavy

• OKX: $23.02M → 86.9% long-heavy

The short-heavy position on Hyperliquid suggests that traders on this platform use different leverage strategies, while the long-heavy positions on Bybit and Binance indicate a market sentiment primarily driven by bullish expectations.

What Do Crypto Liquidation Data Mean?

According to CoinGlass liquidation maps, this recent massive wave of liquidations shows that the market is being cleared of excessive leverage. Such movements usually signal that the market is seeking balance after short-term corrections.

Experts note that crypto liquidation data is an important indicator for investors, reflecting the market’s “cleanup” phase. However, as long as leveraged trading continues, the risk of liquidation remains.

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The post Shock Liquidation in Crypto Market: $545 Million Wiped Out! appeared first on Coin Engineer.

Sharp Decline in Binance Open Interest 

Binance’s Open Interest (OI) data clearly shows the shift in market sentiment. As Bitcoin dropped from $124,000 to $118,000, Open Interest on Binance fell by nearly 5%. This sharp decline indicates that traders either exited the market or closed their positions. In uncertain conditions, investors tend to remain cautious. Such declines often occur after significant price moves, highlighting that market participants are steering away from risk. 

Additionally, Binance’s cumulative net taker volume decreased by $1.89 billion. This sharp decline signals the presence of strong selling pressure. Historically, similar drops have coincided with short-term market bottoms. This suggests that the selling pressure might have peaked, potentially signaling a dip-buying opportunity. 

Binance’s Cumulative Net Taker Volume Hits Rock Bottom 

The latest data indicates that late long positions were largely closed. Traders who opened longs just before Bitcoin peaked are now exiting at a loss. This directly contributes to the drop in Open Interest and net taker volume, reflecting a “long squeeze” in the market. A long squeeze happens when falling prices trigger the liquidation of leveraged long positions, creating a domino effect that accelerates the decline. 

Liquidation analysis confirms this scenario. Net liquidations surged by $130 million within just 8 hours, showing mass long wipeouts. Meanwhile, Binance’s funding rate dropped to 0.006. Low funding rates signal weakened bullish appetite in leveraged positions, paving the way for liquidation cascades. Ultimately, all this data suggests a market reset, with overly leveraged positions being flushed out. 

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The post Bitcoin Crashes, Open Interest Drops: Key Data From Binance! appeared first on Coin Engineer.

An analyst from on-chain analysis platform Santiment focused on the impact and recovery timeline of the recent declines in Bitcoin.

Bitcoin’s plunge to $54,000 has triggered a long squeeze, with long futures positions suffering their biggest losses in a year, according to the analyst.

Will Bitcoin rebound from here?

The analyst noted that the heavy liquidations have led investors to believe “it’s time for a reversal,” but argued that this may not happen immediately.

He pointed out that after a similar magnitude of large liquidations in 2023, significant gains were seen after about 2-3 months. The August decline of last year brought a period of sideways consolidation, with the price not starting to rise again until October.

Bitcoin is up 0.4% in the last 24 hours and is currently trading at $57,600, according to CoinGecko data.

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The post Bitcoin Bulls Suffer Biggest Losses in a Year as Market Crashes appeared first on Coin Engineer.

Spot Bitcoin ETFs in the US had set a record by growing for 19 consecutive days before losing the streak at the start of this week.

Long Squeeze Warning

After the streak was broken, K33 Research analysts said that investors on the CME exchange have been updating their positions to reduce risk. However, investors outside the US are still taking on a lot of risk.

Bitcoin, long squeeze, macro data, inflation, FOMC, Jerome PowellIt has been stated that a long squeeze could occur in the short term, along with the macro data to be released this week.

Leveraged positions used in perpetual futures contracts in Bitcoin have risen to 260,000 BTC after two weeks of growth.

“Traders who have been bullish over the past two weeks are now underwater, the value of open positions has increased by 32,000 BTC compared to the last time Bitcoin traded at these levels,” analysts said.

Developments That Will Affect the Price the Most

The price of Bitcoin was affected by non-farm employment data released in the US last week. Market eyes are now on inflation data coming out of the US this week.

“The FOMC’s dot plot and Jerome Powell’s press conference that will shed light on the future will probably be the most concrete things that affect the price, as Bitcoin continues to show sensitivity to the market’s interest rate expectations,

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