Data shows that the cryptocurrency derivatives market has seen a large number of liquidations in the last day as bitcoin and other assets crashed.
bitcoin and ethereum saw notable drops over the last day
The last 24 hours have been red for digital assets, with most of the market seeing a drop of more than 5%. bitcoin has been no exception as its price has fallen below the $95,000 level.
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Just a couple of days ago the asset showed a strong recovery above the $102,000 mark. The sharp decline since then would suggest that investors did not believe the rally had strength, so they decided to take profits while they could.
ethereum, the second-largest cryptocurrency by market capitalization, has had an even worse time than bitcoin, with its price falling to $3,350 after a nearly 8% drop over the past day.
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With its drop, ethereum has basically regained all the bullish momentum that had come with this new year of 2025. bitcoin still retains some of its gains, but if the current trajectory continues, it won't be long before it suffers the same fate as Well. .
With all the carnage the digital asset sector has seen, you would expect that the derivatives side of the market would have gone through some chaos as well.
crypto Longs Just Taken a Massive Beating
According to data from glass coinA large number of liquidations have accumulated on derivatives exchanges over the last day. “Liquidation” refers to the forced closure of any open contract after having accumulated losses of a certain degree (the exact percentage of which may differ between platforms).
Below is a table that breaks down the relevant numbers related to the latest cryptocurrency sell-offs.
<img class="wp-image-672618 size-large" src="https://technicalterrence.com/wp-content/uploads/2025/01/Crypto-Settlements-Near-690-Million-as-Bitcoin-and-Ethereum-Plunge.png" alt="bitcoin and Cryptocurrency Settlements” srcset=”https://www.newsbtc.com/wp-content/uploads/2025/01/table.png?w=556 556w, https://www.newsbtc.com/wp-content/uploads/2025/01/table.png?w=460 460w” />
As can be seen, a total of $689 million in contracts have been scrapped in the last 24 hours. Of those, more than $609 million of the positions involved were long positions. This means that an overwhelming 88% of liquidations affected traders who were betting on a bullish outcome for the market.
Given the decline the cryptocurrency sector has suffered over this period, it's not exactly a surprise to see this disparity between long and short liquidations.
In terms of the contributions to the contraction of individual symbols, bitcoin has curiously not topped the charts this time. Instead, ethereum has been king with almost $152 million in liquidations.
<img class="wp-image-672621 size-large" src="https://technicalterrence.com/wp-content/uploads/2025/01/1736427903_144_Crypto-Settlements-Near-690-Million-as-Bitcoin-and-Ethereum-Plunge.png" alt="bitcoin and other cryptocurrencies” srcset=”https://www.newsbtc.com/wp-content/uploads/2025/01/details.png?w=784 784w, https://www.newsbtc.com/wp-content/uploads/2025/01/details.png?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2025/01/details.png?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2025/01/details.png?w=750 750w” />
The fact that ethereum's decline was more significant than bitcoin's has a role to play in this, but it may not be the whole story. It is possible that the trend is an indication that speculative interest around eth has been particularly pronounced recently.
