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The crypto market was hit hard as over $16 billion in long positions were liquidated in a single day, marking one of the most severe wipeouts of the year. The sell-off followed sharp losses across U.S. equities, triggering a chain reaction that sent Bitcoin, Ethereum, and a wide range of altcoins into steep decline. The sudden crash erased weeks of gains and left traders reeling.
Wall Street’s broader retreat, driven by rising bond yields and mounting geopolitical tensions, sparked a wave of risk-off sentiment that quickly spread to digital assets. Many crypto investors holding leveraged long positions were caught off guard, leading to automatic liquidations across multiple trading platforms. The rapid unwinding of positions accelerated the downward pressure, deepening the losses across the board.
Bitcoin dropped below key support levels, while Ethereum also saw double-digit losses. Smaller cap tokens were hit even harder, with some shedding more than 20 percent in a matter of hours. Data shows that the majority of liquidations came from over-leveraged longs, reflecting overly optimistic bets on continued upside momentum that quickly unraveled.
The scale of the liquidation event has raised fresh concerns about volatility in crypto markets and the growing risks of leverage. Some traders see the correction as a necessary reset, while others fear continued instability if macroeconomic pressures persist. For now, all eyes are on whether major assets like Bitcoin can find support and begin to recover from the sudden downturn.
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