Altcoin Traders Take the Brunt as $735M in Crypto Liquidations Rock Markets
A broad pullback in crypto prices on Tuesday led to over $735 million in liquidations, with leveraged altcoin traders absorbing the steepest losses.
Ethereum (ETH) and XRP saw the largest long liquidations, surpassing even Bitcoin (BTC). ETH traders lost $152.78 million, while XRP positions were wiped out by $88.58 million, according to data from CoinGlass. BTC, by contrast, saw $65.29 million in liquidations despite its larger market depth.
The sell-off wiped out $625.5 million in long positions, signaling a sharp reversal that caught bullish traders off-guard after a multi-week rally. Analysts point to profit-taking near resistance levels as a key factor, with no major macro trigger driving the move.
Among other notable losses:
- Solana (SOL): $41 million
- Dogecoin (DOGE): $40 million
- Smaller tokens like SPK and PUMP also saw over $10 million in liquidations
The market retreat coincided with major assets testing key technical levels — ETH had been flirting with the $4,000 mark, while BTC climbed above $118,000. Both retraced after heavy resistance and signs of overextended sentiment.
Current price snapshot:
- ETH: Down 3.6% at $3,540
- XRP: Down 6% at $3.25, with weekly losses topping 12%
- BTC: Down just under 2%, trading at $116,800
Crypto liquidations occur when highly leveraged positions are forcibly closed due to margin breaches, often accelerating volatility. Analysts watch these events closely as they can signal key turning points.
Massive long-side liquidations often indicate panic selling and potential bottoms, while short liquidations can precede upside squeezes. Combined with open interest and funding rate trends, liquidation data helps decode trader positioning in overleveraged markets.
