Crypto Market Crashes Again, Over $1 Billion Liquidated
Despite retail optimism, the crypto market crashed, leading to over $1.1 billion in liquidations, primarily from long positions.Summary
Following a recent market crash, short-term retail traders maintained aggressive long positions across major cryptocurrencies like Bitcoin, Ethereum, and Solana, expecting a quick rebound. Data from Hyblock Capital showed high long ratios (68% to 79%) among retail accounts, supported by high Long/Short ratios on Binance.
However, this optimism is challenged by a strong negative correlation between rising long ratios and falling prices for BTC, ETH, and SOL, suggesting retail longs are vulnerable. This vulnerability materialized as over $1.1 billion in positions were liquidated in the past 24 hours, with $873 million coming from long trades, according to CoinGlass data.
The resulting surge in forced liquidations, as the total crypto market cap fell below $3.6 trillion, drains retail capital, potentially hindering a V-shaped recovery and keeping the market volatile and range-bound at lower levels.
(Source：BeInCrypto)