Derivatives Liquidation Wave: Short Positions Under Pressure

Actually, improving investor sentiment created significant pressure on traders holding bearish positions. According to CoinGlass, over 131,000 traders were liquidated in the past 24 hours, with total liquidations surpassing $571 million. Approximately $468.6 million of this came from short positions.

In other words, this shows that the market is not just in a bullish trend, but also that the congestion created by high-leverage trades pushed prices higher. Btw, a single $10.41M Bitcoin liquidation on Hyperliquid marked the largest-volume trade of the day.

Looking at exchange-level distribution, the picture becomes clearer. More than 35% of total liquidations were concentrated on Binance, while short liquidation rates on Bitget and Gate exceeded 70%. Especially on Hyperliquid, the short liquidation rate spiked to 97.6%, highlighting how unprepared bearish traders were for this rally.

Recovery in Ethereum and Major Assets

Bitcoin and Ethereum were at the center of the liquidation data. BTC briefly touched $70,027 during the day, while ETH gained 8.75%, climbing above the psychological $2,000 mark. This move led to the liquidation of $175.16 million in ETH short positions alone.

Notable moves were also observed in altcoins. Dogecoin (DOGE) rose 9.10%, showing the strongest performance, while Lido Staked Ether (STETH) and Cardano (ADA) followed with similar momentum. Luckily, the green trend across the market indicates a stabilizing recovery after the forced liquidation waves.

Technical Analysis: How Crypto Liquidation Impacts the Market

Leverage-driven volatility can have a two-way effect on price stability.

Q: What is crypto liquidation?

A: Crypto liquidation occurs when a trader’s margin account falls below the required level to maintain open positions, prompting the exchange to close the position at market price. Sharp rallies liquidate short positions, while sharp drops liquidate long positions.

The 4.29% rise in total market capitalization supports bullish strategies, but sustained volume is required for a lasting uptrend. Short-term selling pressure has eased for now. However, 2026 macroeconomic uncertainties and potential volatility could trigger new liquidation waves at any time.

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