Crypto markets experienced significant turmoil early Monday, as nearly $646 million in leveraged positions were liquidated across major exchanges. This development added to a tumultuous close for the month, leading to further declines in bitcoin, ether, and notable altcoins. According to data from Coinglass, long positions constituted nearly 90% of the total liquidations, with the most substantial individual liquidation being a $14.48 million ETH-USDC order on Binance. Major exchanges, including Binance, Hyperliquid, and Bybit, recorded liquidations exceeding $160 million, reflecting a sharp repositioning of trades during the Asian trading session.
Liquidation in this context refers to the forced closure of a trader’s leveraged position when they are unable to meet margin requirements, resulting in total or partial loss of their initial investment. Such selloffs often signal market extremes, indicating that a price reversal could be on the horizon as sentiment swings dramatically in one direction.
Bitcoin saw a decline of over 5%, hovering around $86,000, while ether fell more than 6%, settling near $2,815. Both cryptocurrencies had attempted a slight rebound late last week, but the wave of forced liquidations pushed their prices back toward the lower end of November’s trading range. Other significant cryptocurrencies, including Solana, XRP, BNB, and Dogecoin, experienced losses between 4% and 7%. Meanwhile, Cardano and Lido Staked Ether suffered even deeper declines.
Traders attributed the quick market movements to thin liquidity and ongoing macroeconomic uncertainty, which have exacerbated volatility. The broader market has been struggling to find stability following a steep decline in late November, a period marked by adverse macroeconomic signals, ETF outflows, and diminished trading volumes over the weekends.
The recent round of liquidations mirrored patterns seen in earlier downturns this year: substantial long exposure building at resistance levels was followed by changes in funding and a subsequent wave of forced selling that drove major assets lower within a matter of hours. Open interest in BTC and ETH perpetual contracts decreased further after the selloff, indicating that the excessive leverage accumulated during October’s rally is continuing to dissipate.
While some traders suggest that market positioning is becoming less crowded and more “clean,” the overall risk appetite remains fragile. As a result, intraday price swings are expected to remain pronounced until market liquidity improves during the U.S. trading session.
