The cryptocurrency market recently experienced a substantial wave of liquidations, totaling approximately $481 million, equivalent to about ₱27.4 billion, within a 24-hour period. A significant majority of these liquidations, primarily from short positions, occurred after U.S. President Donald Trump announced that Israel and Iran had agreed to a ceasefire. This event highlights the crypto market’s sensitivity to geopolitical developments and the swift reactions of leveraged traders to shifting news.
Massive Crypto Liquidations Hit Traders
In the past 24 hours, the crypto market witnessed widespread liquidations amounting to roughly $481 million. This substantial sum primarily affected traders holding short positions, indicating a rapid market shift following unexpected news. The scale of these liquidations underscores the high leverage often employed in crypto trading and the dramatic consequences of sudden market reversals.
Bitcoin and Ethereum Lead the Charge
Bitcoin ($BTC) and Ethereum ($ETH) were at the forefront of these liquidations, recording $153.95 million and $152.16 million respectively. This highlights their prominent roles in the broader crypto market and their susceptibility to large-scale liquidations. The movements in these two major cryptocurrencies often dictate the overall market sentiment and direction.
Meme Coins and Altcoins Also Affected
Beyond the leading cryptocurrencies, meme coins and various altcoins also experienced significant liquidations. Among meme coins, $1000PEPE led with $7.55 million in liquidations, followed by $DOGE at $6.50 million, and $FARTCOIN at $6.29 million. Altcoins like $SOL ($28.26 million), $XRP ($11.27 million), and $SUI ($5.96 million) also saw substantial losses, indicating a broad market impact.
Breakdown of Liquidated Positions
Out of the total 132,945 affected traders, short positions accounted for a dominant $365.82 million in liquidations, compared to $115.49 million from long positions. The largest single liquidation was a $12.1 million $ETH-$USDT trade on Binance, reflecting the extent of leveraged trading. This imbalance strongly suggests that many traders were betting on continued market downturns.
Exchange-Specific Impacts
Leading crypto exchanges bore the brunt of these liquidations, with Binance seeing $169.11 million (75.09% short positions) and Bybit recording $159.71 million (78.69% short positions). OKX, Gate.io, HTX, CoinEx, Bitfinex, and Bitmex also reported significant liquidations, predominantly from short positions. This distribution across exchanges demonstrates the widespread nature of the market reaction.
Geopolitical Tensions and Crypto Market Dynamics
Heightened geopolitical tensions in the Middle East initially triggered a sharp selloff in the cryptocurrency market, briefly pushing $BTC below the $100,000 mark. The turmoil stemmed from US airstrikes on Iranian nuclear sites and rising hostilities between Israel and Iran. This escalation rattled global financial markets, leading to risk-off behavior and a surge in crypto trading volume.
Ceasefire Announcement and Market Reversal
However, a day after Iran’s retaliatory strikes, President Trump announced that both countries had agreed to a “complete and total ceasefire.” This unexpected de-escalation triggered the massive short squeeze and subsequent liquidations across the crypto market. Market analysts, including BitMEX co-founder Arthur Hayes, hinted that this weakness could be temporary, asserting Bitcoin’s status as a safe haven asset.
Trump Media’s Bitcoin Treasury Plan
Amidst the market volatility, Trump Media and Technology Group Corp. confirmed its plans for a massive $2.3 billion Bitcoin treasury strategy. The company, founded by Trump and listed on Nasdaq and NYSE Texas ($DJT), also announced a $400 million stock buyback program. This strategic move highlights confidence in Bitcoin’s long-term value despite short-term market fluctuations and signals a significant institutional embrace of the cryptocurrency.
