Crypto Markets See $646M in Forced Liquidations Amid Monday Sell-Off

Crypto markets faced a fresh wave of forced liquidations early Monday, with nearly $646 million in leveraged positions wiped out across major exchanges. The sell-off extended losses in bitcoin (BTC), ether (ETH), and large-cap altcoins, adding to a rough close for the month.

Data from Coinglass shows that long positions accounted for almost 90% of the total, with the largest single liquidation being a $14.48 million ETH-USDC order on Binance. Binance, Hyperliquid, and Bybit each recorded over $160 million in liquidations, reflecting heavy positioning that snapped during the Asian trading session.

Liquidation occurs when an exchange forcefully closes a trader’s leveraged position due to insufficient margin. Cascading liquidations often signal market extremes, where sentiment overshoots and a price reversal could be imminent.

Bitcoin fell over 5% to around $86,000, while ether dropped more than 6% to near $2,815. Both had attempted a mild rebound late last week, but forced unwinds pushed prices toward the lower end of November’s range. Solana, XRP, BNB, and Dogecoin fell between 4% and 7%, while Cardano and Lido Staked Ether suffered deeper losses. Traders cited thin liquidity and ongoing macro uncertainty as key drivers of the rapid decline.

The market continues to struggle for stability after late-November drawdowns, when macro signals, ETF outflows, and weak weekend volumes unwound weeks of crowded positioning. Monday’s purge mirrored earlier sell-offs this year: heavy long exposure builds near resistance, funding shifts, and cascading forced selling depresses major assets within hours.

Open interest across BTC and ETH perpetuals declined further after the rout, indicating that some leverage built up during October’s rally is still being washed out. Traders noted that positioning is now cleaner, but with risk appetite fragile, intraday swings are likely to remain elevated until liquidity improves during the U.S. session.