Bitcoin Leads $420 Million Crypto Liquidation Wave as Leverage Resets

Crypto derivatives markets experienced a sharp deleveraging episode, with roughly $420 million in leveraged positions liquidated over 24 hours. Long positions accounted for about 68 % of the total, indicating that bullish bets were unwound first, while short positions dominated a later 4‑hour squeeze that erased $8.58 million, mainly on Bitcoin.

Bitcoin registered the largest single‑asset losses at $23.22 million, followed by Ethereum with $16.91 million. Prices remained stable, with Bitcoin trading near $64,000 and Ethereum around $1,800. The limited price movement contrasted with heavy liquidation activity, suggesting that market sentiment was driven more by margin positions than by fundamental price shifts.

Derivatives volume rose about 9.5 % day‑over‑day to $376.7 billion, while spot trading stayed calm. The event was interpreted as a reset of crowded short‑term risk in the crypto market, with traders pulling back leverage after a brief rally that squeezed many short bets.