More than $1.7 billion in crypto positions vanished in hours as Bitcoin fell sharply. Heavy leverage turned a fast selloff into a liquidation cascade.
A sudden wave of forced selling ripped through crypto markets, wiping out $1.7 billion in leveraged positions in less than a day.
Bitcoin ( 82224.79 ) fell from $86,000 to $80,000, a 6.5% decline that unfolded quickly once key support levels failed.
Data from exchange trackers shows Bitcoin positions made up roughly $1.0 billion of the total losses, with the rest spread across Ether and other large tokens.
Trading volume surged, and derivatives markets saw rapid position closures as margin limits were hit.
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$1.7B In Liquidations Hit In One Day
Most of the losses occurred in a tight window as prices slipped below widely watched levels. Futures and perpetual contracts took the largest hit, according to liquidation data.
Once initial sell orders triggered margin calls, exchanges automatically closed positions, adding more sell pressure. This feedback loop caused prices to fall faster than in a typical spot market move.
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Why The Selloff Accelerated So Quickly
Before the drop, funding rates showed many traders held leveraged long positions. As prices fell, funding flipped negative, raising costs for long holders and forcing exits.
Stop losses clustered around similar price levels, and when those levels broke, selling accelerated. With bids pulled from order books, even modest sell orders pushed prices lower.
Levels To Watch Now
$80,000 stands as the first major support zone. A clear break below it could open the door to deeper losses.
On the upside, $85,000 to $88,000 marks a key resistance range where previous buyers exited.
Flows into and out of spot Bitcoin ETFs, along with options expiries, will likely shape short term direction.
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Conclusion
The $1.7 billion wipeout shows how fast leverage can unwind when sentiment turns. Until positioning resets and flows stabilize, sharp price swings remain likely.
Should You Invest $1,000 In Bitcoin Now?
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Since 2017, InvestingHaven’s blockchain research service has been guiding investors through both bull runs and crypto winters.
