Crypto Markets Rattled as $840M in Longs Liquidated; Is Capitulation Signaling a Turnaround?

A sharp sell-off in the crypto market over the past 24 hours has led to more than $840 million in liquidations, primarily targeting bullish futures positions. The widespread unwinding comes amid renewed macroeconomic uncertainty, triggering questions about whether the worst may soon be over.

Bitcoin (BTC) dropped below $77,000, marking one of its steepest declines in recent months. Ether (ETH) followed suit, tumbling nearly 15% to around $1,500. Other top assets, including Solana (SOL), XRP, and Dogecoin (DOGE), saw similar declines of up to 15% before modest rebounds during early Asian trading hours.

Data from CoinGlass shows that BTC and ETH long positions alone accounted for over $610 million in losses, while altcoin futures — particularly those tied to SOL and XRP — saw a combined $80 million in liquidations.

The vast majority of futures traders had been positioned for a price recovery, with 86% of open interest skewed long. As prices turned sharply lower, forced closures of overleveraged positions created a liquidation cascade that exacerbated the downward move.

This phenomenon — known as a liquidation event — occurs when traders using borrowed funds are unable to meet margin requirements, leading exchanges to automatically close positions. Large-scale liquidations often reflect heightened fear and emotional decision-making, and historically, they can mark exhaustion in selling pressure.

The broader market pullback is part of a larger trend across risk assets. U.S. stock index futures fell another 4–5% following renewed concerns over President Trump’s aggressive tariff strategy. The uncertainty has rippled across global markets, with prominent voices like hedge fund manager Bill Ackman calling for a temporary pause to avoid further economic damage.

Despite the sharp losses, some analysts are viewing this moment as a potential inflection point — where forced selling may give way to stabilization, especially if macro conditions begin to settle.