The cryptocurrency market faced heavy losses on Tuesday, with about $380 million in leveraged positions liquidated in 24 hours after Bitcoin’s rally stalled. The sudden price drop forced thousands of traders out of their positions, marking one of the largest liquidation events since October.
Bitcoin (BTC) fell 1.8% to $102,850, while Ethereum (ETH) dropped below $3,500, triggering $71.9 million in liquidations. Overall, long positions accounted for 82% of total losses, showing that most traders had bet on prices continuing to rise.
Long Traders Hit the Hardest
According to data from Coinglass, $312 million in long positions were wiped out compared to $68 million in shorts. Bitcoin alone saw $180 million in long liquidations as prices failed to stay above the key $104,000 level.
Ethereum traders also suffered, with $58 million in long liquidations, while altcoins like Solana (SOL) and XRP saw smaller but sharp declines. Binance led the wipeout with $142 million in closed positions, followed by OKX and Bybit. The largest single loss was a $12.8 million Bitcoin long on Bitfinex.
Market Weakness Follows Rally
The sell-off followed Bitcoin’s brief rise above $107,000 on Monday, which quickly faded as investors took profits and moved back into equities. Growing concerns about inflation and a stronger U.S. dollar also weighed on crypto prices.
Analysts said the drop was intensified by overleveraged traders and weak ETF inflows for Ethereum. Open interest in futures fell 12%, showing that traders are reducing risk ahead of key U.S. inflation data expected Wednesday.
Trader Reactions Mixed
On social media platform X, traders blamed “liquidation cascades” and institutional selling for the sharp decline. Others said the pullback could be healthy, removing excess leverage from the system. Some large investors even used the dip to buy—MicroStrategy reportedly added 1,200 BTC at around $103,000.
What Comes Next
Bitcoin now faces strong support near $100,000, while Ethereum’s next key level sits around $3,400. A cooler-than-expected inflation reading could help prices rebound, but a hotter report may extend the decline.
Despite the setback, analysts say the market remains in a longer-term uptrend, though traders should expect continued volatility in the days ahead.
