Crypto Market Experiences Significant Drawdown as $585M in Long Positions Liquidated
FRIDAY UPDATE: A sharp correction in cryptocurrency prices triggered substantial liquidation activity, with over half a billion dollars in long positions wiped out across the market.
Key Cryptocurrencies Hit Hard
According to CoinGlass data, a total of $585.86 million in long positions were liquidated on Friday.
Bitcoin (BTC) led the decline, dropping 2.63% to $115,356. The cryptocurrency accounted for $140.06 million of the liquidated long positions.
Ethereum (ETH) followed closely, falling 1.33% to $3,598 and absorbing $104.76 million in liquidations.
Total Long Liquidations: $585.86M
BTC Liquidations: $140.06M
ETH Liquidations: $104.76M
Dogecoin (DOGE) suffered the steepest percentage loss among major coins, plunging 7% to $0.22 and triggering $26 million in liquidated long positions, based on Nansen data.
Traders Blame Market Maker Dumping
A prominent crypto trader, identified as Ash Crypto, commented on the sharp selloff: “This dump is a pure leverage flush,” they said on X.
“Many people longed Alts after they saw ETH pumping hard, so market makers dumped and liquidated the late longs.”
The sudden downturn resulted in the liquidation of 213,729 leveraged traders caught off guard despite recent bullish sentiment. The broader market saw $731.93 million in total liquidations (short and long positions combined) over the past 24 hours.
Recent Market Highs Context
Bitcoin recently hit an all-time high of $123,100 on July 14, fueling market optimism.
Maintained Overall Bullish Sentiment
Despite the pullback, overall sentiment in the crypto market remains bullish. The Crypto Fear & Greed Index reported a “Greed” score of 70 on Friday.
Prominent crypto figures continue to express confidence in future price appreciation.
Galaxy Digital CEO Michael Novogratz forecast at least a 9.8% price increase for Ethereum, reaching $4,000.
Bitfinex analysts noted that if Bitcoin’s uptrend continues, the next major target could be $136,000.
However, traders are increasingly hedging against the possibility of a rapid reversal in Bitcoin’s price. A return to Thursday’s trading range near $119,500 could jeopardize approximately $3.07 billion in short positions.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making any decisions.
