Crypto Today: $1.7B Liquidation Wave Shakes Bitcoin & Altcoins
The Sell-Off at a Glance
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$1.5–$1.7B liquidated: Mostly leveraged long bets unwound across exchanges.
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400,000+ traders hit: Positions flushed out in less than a day.
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BTC down, ETH slammed: Bitcoin briefly slipped below $113K; Ethereum lost nearly 9%.
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Altcoins bleed: XRP, DOGE, SOL all down between 4–10%.
Why It Happened
High leverage. Open interest in futures had built up to stretched levels, leaving traders exposed. When BTC wobbled, it triggered a chain reaction—altcoins with weaker liquidity were hit hardest.
Why It Matters
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Cascading risk: Leverage cuts both ways; the higher it builds, the sharper the fall.
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Altcoin fragility: Speculative tokens suffer most when markets turn.
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Opportunity window: Pullbacks can create better entry points for long-term holders—if risk is managed.
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Macro still rules: With the Fed and regulators shaping sentiment, outside shocks could either stabilize or worsen the slide.
What to Watch
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BTC support: If Bitcoin can’t hold above $113K, some analysts eye $106–108K.
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Funding rates & open interest: Spikes here suggest more leverage risk ahead.
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Regulatory headlines: Especially from the U.S. Fed or China.
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Altcoin divergence: Which projects prove resilience, which unravel.
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