Bitcoin fell sharply below $60,000 early Tuesday, leading a broad crypto market drop that triggered one of the largest liquidation events in nearly two years. Ethereum slipped under $1,600, while Solana briefly hit $65 before recovering slightly.
Data from Coinglass shows $971 million in liquidations over the past 24 hours, dominated by $785 million in long positions. Short liquidations reached $186 million, highlighting the intensity of the sell-off.
leveraged positions take heavy losses
The steep decline hit high-leverage traders hardest, with several large positions posting significant unrealized losses.
One major holder on the Hyperliquid platform maintained a 120,000 ETH long position that is now down more than $77 million on paper. The trader added $8 million in margin overnight to avoid liquidation, keeping the threshold below $1,200 while holding $6 million in USDC as reserve collateral.
Related wallets showed similar strain. One address holding 30,000 ETH at 20x leverage was down $18.8 million, while another with 40,000 ETH at 15x leverage posted a $25.9 million loss. The combined exposure reflects mounting pressure on leveraged long traders as Ethereum dipped below $1,600.
Another widely tracked trader, Huang, has accumulated losses exceeding $33.75 million on Ethereum longs. His latest 25x leveraged position was liquidated overnight for a $1.81 million loss after multiple liquidations over the weekend. He later re-entered the market with a smaller $1.5 million long.
Garret Jin, known for a large Bitcoin long portfolio, currently holds 1,270 BTC at an average entry price of $76,117, translating to an unrealized loss of $18.4 million. His liquidation level near $16,964 remains distant but is under increased pressure amid the downturn.
A separate high-frequency Ethereum trader closed an $28.5 million loss on an 18x leveraged long after previously earning $4.29 million from 15 successful trades. The trader then exited additional short-term positions totaling 7,794 ETH within minutes and withdrew $350,000 in USDC, ending with a net profit of about $1.04 million.
Losses were not limited to long positions. A trader who had previously gained $13.68 million from altcoin trades exited an Ethereum position by transferring 6,855 ETH—purchased at an average of $1,881—to an exchange, locking in a $2.63 million loss.
Another leveraged account holding both Bitcoin and XRP showed a combined unrealized loss of $4 million, including $2.9 million on Bitcoin and $1.2 million on XRP.
prices attempt a modest rebound
Following the sharp sell-off, prices showed signs of stabilization. Bitcoin recovered to trade above $61,500, Ethereum moved toward $1,650, and Solana approached $70.
Despite the rebound, most large traders remain under water, and market exposure continues to face downside risks if volatility persists.
broader market faces deleveraging pressure
The sell-off reflects a wider deleveraging trend across the crypto market, wiping out much of the recovery seen earlier in June. Overall market capitalization has dropped 54% from its October 2025 peak, erasing approximately $2.2 trillion in value over 261 days.
Macroeconomic concerns are adding to the pressure, with persistent inflation and expectations of multiple interest rate hikes in 2026 weighing on demand. Bitcoin ETFs have recorded $6.4 billion in net outflows over the past 30 days, signaling a shift toward reduced exposure.
Market sentiment has also weakened, with the Crypto Fear & Greed Index falling to 35, indicating a state of fear.
supply overhang adds uncertainty
Additional selling pressure is coming from large holders. Wallets linked to the German government previously sold nearly 50,000 BTC at an average price of $57,900, a level close to current market prices. Any further distributions could introduce fresh supply into a fragile market.
Mt. Gox-related wallets have also moved more than 10,400 BTC, valued at over $739 million, as part of ongoing creditor repayments. The estate still holds more than 34,500 BTC, with a final repayment deadline set for October 31, 2026, leaving a significant supply overhang.
derivatives signal reduced speculation
The derivatives market shows signs of cooling speculation. Bitcoin futures open interest dropped 19.5% in June, falling from $26 billion to about $20.89 billion. The decline suggests leveraged positions are being unwound, potentially shifting market dynamics toward spot-driven trading.
key technical levels in focus
Solana is nearing a critical level around $68. A failure to hold this support could push prices toward $60, with a bearish double-top pattern forming near $75. A move back above $75 would be needed to restore a more positive outlook.
Ethereum is testing a major long-term support zone near $1,700 within a multi-year symmetrical triangle. A breakdown below this structure could expose deeper downside targets, potentially toward $1,060, marking a pivotal moment for its broader trend.
Worried about forced liquidations? Learn smart ways to avoid liquidation and manage leverage more safely in volatile markets.
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