Crypto Faces Over $6 Billion in Liquidations Amid Shock Market Drop

The crypto market suffered a large wave of forced liquidations Friday, with more than $6 billion in leveraged positions wiped out in just a few hours. The sharp move came as traders scrambled to exit positions amid growing macro and geopolitical uncertainty.

Bitcoin and Ethereum led the sell-off, with heavy long liquidations dragging prices sharply lower. In one hour alone, over $3 billion was reportedly liquidated across major tokens. Some estimates suggest the total liquidation tally could be even higher when all leveraged positions are included.

The liquidation cascade was triggered in part by a sudden spike in volatility and risk aversion across markets. For many traders using high leverage, small adverse moves forced position closures, fuelling further downward momentum.

Implications & Watchpoints

• The scale of the liquidations underscores how fragile leveraged positions can be in volatile markets.

• Traders should monitor large order flows and margin calls in the coming sessions, which could further pressure crypto prices.

• A rebound might be possible if buyers step in near key support zones, but until then, further downside remains a risk.