$105 million liquidation in 24 hours: Why are long positions becoming the market "killers"

In the past 24 hours, the cryptocurrency market has experienced a wave of intense volatility. According to Coinglass data, the total forced liquidation across the network reached $105 million, with long positions accounting for the majority at $80.83 million, while short positions were only $23.78 million. Behind this figure, 60,486 traders were forcibly liquidated, with the largest single liquidation occurring on Hyperliquid’s BTC-USD trading pair, amounting to $2.5192 million.

The Deeper Meaning of Liquidation Data

Why are long liquidations far higher than short liquidations?

From the liquidation structure, long positions were liquidated 3.4 times more than short positions. This reflects that there are more bullish investors and higher leverage in the market. Currently, BTC is trading near $90,528, with a 24-hour decline of only 0.80%, but such a correction is enough to trigger liquidations among those with tight stop-losses or high leverage.

Specifically, BTC long liquidations amounted to $14.7002 million, far exceeding the $1.8258 million in short liquidations. The situation is similar for ETH, with long liquidations at $10.2917 million and short liquidations only $1.0635 million. This indicates that market participants are generally optimistic, but risk management has become problematic.

Number of Liquidated Traders

Within 24 hours, 60,486 traders were liquidated, a significant number. The average loss per liquidated account is about $17,350, but the occurrence of a single liquidation reaching $2.5192 million shows that some traders are engaging in extremely high leverage operations.

Correlation with Market Price Trends

Although the short-term decline is modest, it is enough to trigger liquidations. This reflects that leverage levels in the market are generally high, so even small fluctuations can cause large-scale forced liquidations. BTC’s market cap has reached $1.81 trillion, accounting for 58.48% of the entire cryptocurrency market, and its price volatility significantly impacts the overall market.

Market Risk Characteristics

The current liquidation data reveal several signals: first, market participants remain optimistic about future trends, with long positions generally heavy; second, risk management awareness may be loosening, as many traders set overly aggressive stop-losses; third, the presence of large liquidations indicates that some institutions or major players are still engaging in high-risk operations.

Summary

The $105 million in 24-hour liquidations, while not the highest in history, has structural features worth noting. The dominance of long liquidations indicates that market sentiment remains optimistic, but it also concentrates risk among the bullish side. If a larger correction occurs in the future, it could trigger a chain reaction of liquidations. Investors need to reassess their leverage strategies, especially now that BTC has hit new highs and valuations are relatively high.