Crypto Markets Face $646M in Liquidations as Bitcoin and Ether Extend Losses

Crypto markets were slammed early Monday after a sharp wave of forced liquidations erased nearly $646 million in leveraged positions across major exchanges. The sudden flush-out pressured bitcoin, ether and top altcoins, dragging prices back toward the lower end of their recent trading ranges and adding to an already bruising month for digital assets.

According to data from Coinglass, long positions accounted for almost 90% of the total liquidations, signaling that bullish traders bore the brunt of the selloff. The largest single liquidation involved a $14.48 million ETH-USDC position on Binance. Binance, Hyperliquid and Bybit each logged more than $160 million in wiped-out positions, highlighting how heavily leveraged the market had become heading into the Asian trading session.

Liquidations occur when an exchange automatically closes a leveraged trade because the trader can no longer meet margin requirements. When liquidation cascades begin, they often exaggerate downside moves, creating market extremes that can sometimes precede a reversal.

Bitcoin fell more than 5% to around $86,000, while ether slid over 6% to about $2,815. Both had attempted modest recoveries late last week, but the forced unwinding of leverage pulled prices sharply lower once again. Major altcoins weren’t spared either—Solana, XRP, BNB and Dogecoin dropped between 4% and 7%, while Cardano and Lido Staked Ether posted even steeper declines. Analysts pointed to thin liquidity and ongoing macro uncertainty as key drivers behind the rapid move.

The market has struggled to regain momentum following late November’s pullback, when ETF outflows, macro headwinds and weak weekend volumes unwound weeks of crowded long positioning. Monday’s selloff mirrored earlier downturns this year: leverage builds into resistance, funding rates shift, and sudden forced selling accelerates losses within hours.

Open interest in BTC and ETH perpetual futures fell further after the drop, suggesting excess leverage from the October rally continues to be flushed out. While traders say positioning now appears cleaner, fragile sentiment means volatility is likely to remain elevated until deeper liquidity returns during the U.S. trading session.