A staggering $489.46 million was wiped out in liquidations, marking a significant period of volatility for traders. The crypto market was rocked by fluctuations in Bitcoin’s price, as well as notable movements in several altcoins, driving both long and short positions to liquidation.

Bitcoin, the dominant cryptocurrency, saw its price dip to $95,000 over the weekend before recovering slightly above $98,000 at the time of writing. This price fluctuation contributed heavily to the overall liquidations, with long positions bearing the brunt of the damage. As the market continues to experience sharp fluctuations, both Bitcoin and altcoins have seen considerable liquidations.

Bitcoin Leads the Liquidation Pack

Bitcoin’s volatility played a major role in the market’s significant liquidation figures. Over the past 12 hours, the cryptocurrency saw $21.73 million in liquidations, with long positions making up the majority of this volume. The 24-hour total for Bitcoin’s liquidations reached approximately $81 million, with long positions accounting for a significant portion.

Binance reported $23.22 million in long liquidations and $6.55 million in short liquidations, while OKX recorded $7.95 million in long liquidations and $7.79 million in short positions. Despite the larger liquidation volume in the short term, long liquidations still prevailed in the broader 24-hour window.

The price drop to $95,000 during the weekend caused mass liquidations for those holding long positions, but with Bitcoin’s recovery to $98,000, the market’s dynamics became more complex, contributing to a mix of long and short liquidations.

Altcoin Market Experiences Major Liquidations

While Bitcoin was the primary driver of the liquidations, altcoins also saw significant liquidation activity. The altcoin market was not immune to the volatility, with several popular tokens facing substantial losses and liquidations.

• Sandbox (SAND): Despite a 33.39% surge in price to $0.7739 over the past 24 hours, Sandbox experienced $14.33 million in liquidations. Over the past week, SAND’s price has increased by a remarkable 113.43%, highlighting strong market interest.
• Ethereum (ETH): Ethereum saw $12.51 million in liquidations, though its price fell by 1.10% to $3,387 within the last 24 hours. Ethereum’s weekly performance, however, remained strong with an 8.79% increase.
• XRP: XRP faced $9.01 million in liquidations, but its price saw a slight increase of 0.27% to $1.46 in the past day, with a significant 25.63% rise over the last week.
• Dogecoin (DOGE): Liquidations of $7.82 million hit Dogecoin, with its price dropping by 3.25% to $0.4239. Despite this, DOGE has seen a 14.67% increase in price over the past week.
• Stellar (XLM): Stellar recorded $6.80 million in liquidations as its price dropped by 8.81% to $0.5153, but its price has surged by 127% over the past week.

Other tokens like Solana (SOL) and Cardano (ADA) also faced liquidations, with $3.61 million and $3.27 million respectively. Despite the recent declines in their prices (down 1.63% and 1.94% in 24 hours), both tokens have seen substantial weekly gains, suggesting the market’s underlying strength.

Volatility Drives Liquidation Frenzy

The dramatic price shifts of Bitcoin and altcoins have fueled an intense liquidation cycle across multiple exchanges. Liquidations occur when traders are forced to close out their positions due to margin calls, typically after prices move in the opposite direction of their trades. This phenomenon can create a cascading effect, as more liquidations lead to further price declines and increased market volatility.

The market has also seen a surge in short positions, with Bitcoin’s liquidation pattern showing a mixed dynamic between long and short positions. While long positions dominate the 24-hour liquidation total, shorts have had a stronger presence in the shorter-term windows. This suggests that traders are still uncertain about Bitcoin’s price trajectory, as the crypto market remains in a state of flux.

What’s Next for the Crypto Market?

The crypto market is no stranger to volatility, but the recent liquidations underscore just how quickly sentiment can shift. Bitcoin’s price movements continue to dictate the broader market’s behavior, but altcoins have proven resilient, with some even posting impressive weekly gains despite the sell-offs.

As Bitcoin’s price stabilizes above $98,000, many are watching to see whether the cryptocurrency can maintain its recovery or if further corrections are on the horizon. Altcoins like Sandbox and Ethereum are also facing volatile conditions, but their strong weekly performance suggests that the market’s appetite for growth remains intact.

For now, traders should brace for more fluctuations as the market works through these liquidation events. The outcome will depend on how quickly market confidence is restored and whether Bitcoin can maintain its dominance or if other assets like Ethereum and XRP continue to pick up momentum.