Crypto Traders Lose $1B in 24 Hours as Short Sellers Face Rising Pressure

Total cryptocurrency liquidations exceeded $1 billion in a 24-hour period, driven by bitcoin’s drop to $59,018, its lowest level in 2026. Data shows $781 million in long positions were liquidated against $218 million in shorts, with 176,694 traders affected. The largest single liquidation order was $12.21 million.

Bitcoin alone accounted for $413 million in liquidations—about 40% of the total—split between $320 million in long bets and $93.4 million in shorts. Analysts warn that a drop below $58,000 could trigger further massive liquidations.

Ethereum saw the next-largest liquidations at $230 million, with long bets comprising $170 million (74%). This followed ether’s fall to $1,557, pushing its market cap below $200 billion. Solana, which briefly dropped below $65, recorded $46 million in liquidations, primarily from longs.

Other notable long liquidations included XAG ($25.5 million), Dogecoin ($13.4 million), XRP ($12.6 million), and HYPE ($7.3 million).

The event represents the largest single-day leverage flush since the market correction in early June. With aggregate open interest shifting and predictions of deeper declines, skeptics caution that the derivatives market has become overcrowded with short positions.

This heavy bearish positioning creates conditions for a potential short squeeze. Market analyst Pepesso notes that a bitcoin rally to $69,500 could trigger an estimated $4.7 billion in short liquidations. Similarly, if ethereum breaches the $1,875 resistance level, short liquidations could reach $2.4 billion.

Source: https://news.bitcoin.com/crypto-traders-lose-1b-in-24-hours-as-short-sellers-face-rising-pressure/