Crypto Markets Reel as Liquidations Surge Over $1 Billion, Bitcoin, Ethereum, Dogecoin Drop Sharply
Major cryptocurrencies tumbled Thursday as crypto derivatives markets recorded over $1.1 billion in liquidations—primarily from long positions—according to market data. The rout sent Bitcoin, Ethereum, and Dogecoin into steep declines, sowing uncertainty among traders and investors.
Bitcoin led the slide, falling about 3.6% over the 24-hour period. The token dipped below $110,000, marking one of its sharper declines in recent sessions. Over the past week, Bitcoin is down nearly 7%.
Ethereum, the second largest crypto by market cap, saw an even sharper drop, sliding around 7% to trade near $3,887. Memecoin heavyweights weren’t spared either—Dogecoin fell 7.6% during the same span, trading close to $0.23. Several altcoins, including Solana, also experienced steep weekly losses of roughly 21%, amplifying the breadth of selling across the market.
Much of the damage can be traced to forced liquidations in the derivatives space. As leveraged long bets were swept away en masse, the cascade drove price declines and eroded liquidity. Analysts at Glassnode warned that the crypto market is now showing “signs of exhaustion,” with retrenchment likely unless institutional or retail demand reemerges.
Market watchers are now debating whether this drop is a temporary pullback or the start of a deeper correction. Some believe the sector may consolidate for a time before resuming its longer-term trajectory, while others warn that excess leverage could lead to further turbulence.
Looking ahead, key data points—including U.S. inflation readings and central bank policy statements—are expected to influence whether markets stabilize or dive further. For now, traders are bracing for continued volatility as price momentum reacts to liquidations and macro developments.
Bitcoin led the slide, falling about 3.6% over the 24-hour period. The token dipped below $110,000, marking one of its sharper declines in recent sessions. Over the past week, Bitcoin is down nearly 7%.
Ethereum, the second largest crypto by market cap, saw an even sharper drop, sliding around 7% to trade near $3,887. Memecoin heavyweights weren’t spared either—Dogecoin fell 7.6% during the same span, trading close to $0.23. Several altcoins, including Solana, also experienced steep weekly losses of roughly 21%, amplifying the breadth of selling across the market.
Much of the damage can be traced to forced liquidations in the derivatives space. As leveraged long bets were swept away en masse, the cascade drove price declines and eroded liquidity. Analysts at Glassnode warned that the crypto market is now showing “signs of exhaustion,” with retrenchment likely unless institutional or retail demand reemerges.
Market watchers are now debating whether this drop is a temporary pullback or the start of a deeper correction. Some believe the sector may consolidate for a time before resuming its longer-term trajectory, while others warn that excess leverage could lead to further turbulence.
Looking ahead, key data points—including U.S. inflation readings and central bank policy statements—are expected to influence whether markets stabilize or dive further. For now, traders are bracing for continued volatility as price momentum reacts to liquidations and macro developments.