Nearly $297 million in leveraged cryptocurrency positions were liquidated over the past 12 hours as sharp price swings triggered margin calls across major trading platforms, data from Coinglass shows.
Long positions bore the brunt of the move, accounting for about $245 million of the liquidations, while short positions made up roughly $51.56 million. The imbalance points to a market that had been leaning heavily bullish before the latest downturn.
Bitcoin leads losses, ethereum follows
Bitcoin traders recorded the largest losses, with around $185 million in open positions cleared during the period. Ethereum was a distant second, with about $28.74 million in forced liquidations.
The wave of liquidations coincided with choppy trading conditions in early June, as rapid price shifts in major tokens triggered automated margin calls and forced position closures.
Sudden reversal hits bullish leverage
The heavy wipeout of long positions suggests many traders were caught off guard by a swift pullback. When prices drop sharply, algorithmic systems on derivatives platforms automatically close out underwater positions to cover outstanding loans, which can amplify downward pressure.
The clear skew toward long liquidations highlights how a broadly bullish stance in the derivatives market was abruptly challenged by the latest decline.
Etf outflows add to selling pressure
Derivatives pressure has been reinforced by continued selling in regulated products. United States spot bitcoin exchange-traded funds have seen more than $4.21 billion in net outflows over the past three weeks, according to recent fund flow data.
Spot ethereum ETFs have also come under strain, recording approximately $241 million in outflows during the last week of May. These capital withdrawals have added to the downward drag on prices and weakened support levels.
Key levels break as sentiment deteriorates
Bitcoin recently slipped below the closely watched $72,000 mark, a level many market observers had viewed as an important area of support. As prices retreated, broader sentiment soured.
The widely followed Crypto Fear and Greed Index dropped to 30, a reading that signals a state of “fear” in the market. Such levels often reflect growing caution among traders and reduced appetite for aggressive risk-taking.
Volatility compresses despite turmoil
Despite the liquidations and negative flows, short-term price swings have narrowed. One-week realized volatility for bitcoin has fallen to a multi-year low of about 17%, signalling an unusually calm surface in a market still facing heavy positioning pressures.
Analyst Axel Adler Jr. noted that similar periods of deep volatility compression have historically resolved in strong, directional moves rather than extended stasis, warning that “such calm rarely ends quietly.”
Market braces for next major move
With leverage flushed out, ETF flows negative and volatility tightly compressed, traders are watching for a decisive break. The next significant move could take the form of a risk-on rally if prices recover key levels, or a renewed wave of selling if support continues to fail in the coming weeks.
Want to understand and prevent similar wipeouts? Read how to avoid liquidation in volatile crypto markets.
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