Data shows the crypto derivatives market has experienced a new wave of liquidations as Bitcoin and other assets undergo a pullback. According to CoinGlass, more than $462 million in positions were liquidated over the past day.
“Liquidation” refers to the forced closure of an open contract after it accumulates losses beyond a certain threshold set by the trading platform. Widespread liquidations can happen when an asset’s price swings sharply, leaving traders without enough time to close their positions. This risk increases when traders use high leverage.
The recent liquidations were triggered by a broad downturn across digital assets, which pushed Bitcoin below $89,600. Of the total liquidations, long positions accounted for the vast majority—about $418 million, or more than 90%. This suggests that Bitcoin’s recovery above $94,000 may have encouraged traders to open new long positions, which were then caught off guard by the sudden drop.
Bitcoin led the liquidations with $132 million, followed closely by Ethereum at $116 million. Interestingly, Zcash (ZEC) came in third with $24 million in liquidations—more than assets like XRP and Solana—likely due to its steeper decline over the past 24 hours.
This latest squeeze comes as open interest in futures markets has been rising again, according to Glassnode. After a bearish period in October and November led to heavy liquidations and reduced risk-taking, open interest has recently rebounded, indicating traders are gradually rebuilding positions.
At the time of writing, Bitcoin is trading near $89,500, down 2% over the past day.
Frequently Asked Questions
FAQs 460 Million in Crypto Long Positions Liquidated as Bitcoin Drops Below 90000
Beginner Questions
What does long positions liquidated mean
It means traders who borrowed money to bet that Bitcoins price would go up were forced to sell their holdings at a loss because the price dropped suddenly Their bets were automatically closed by the exchange to prevent further losses
Why did Bitcoin dropping below 90000 cause this
Many traders had placed automatic orders or had loans that were set around that price level When Bitcoin fell through it it triggered a wave of automatic selling creating a chain reaction
What is leverage in crypto trading
Leverage is like using a loan to amplify your trade For example using 10x leverage means you control 10000 worth of Bitcoin with only 1000 of your own money It magnifies both profits and losses
Is my money in a regular crypto wallet safe from this
Yes This liquidation event primarily affects people actively trading with borrowed funds on centralized exchanges If you simply hold Bitcoin in your own wallet without using loans your coins are not liquidated
What is a long position
A long position is when you buy an asset expecting its price to increase so you can sell it later for a profit
Intermediate Market Impact Questions
How does a liquidation happen
Exchanges set a liquidation price for leveraged trades If the market price hits that level the exchange automatically sells the traders position to repay the borrowed funds before the traders initial capital is completely lost
Why was the amount so large460 million
A high number of traders were using high leverage during a period of bullish sentiment When a key psychological level like 90000 broke it caused a sharp fast drop that liquidated many of these highly leveraged positions at once
What is a cascade or domino effect liquidation
This occurs when one large liquidation creates a wave of selling pressure pushing the price down further which then triggers the next set of liquidations at lower price points creating a rapid downward spiral
Does this mean the bull market is over
Not necessarily Sharp corrections and liquidations are common in