A sharp collapse in crypto markets erased nearly $900 million in bullish leveraged positions to start the week, rattling Bitcoin, Ether, and Dogecoin.
Key Takeaways:
- Over $900M in long bets were liquidated as major cryptocurrencies plunged.
- Bitcoin (BTC) briefly slid below $109K, wiping out gains since Powell’s Jackson Hole remarks.
- Ether (ETH) and Dogecoin (DOGE) fell more than 7%, amplifying the sell-off across altcoins.
Crypto derivatives markets were hit hard today, August 26, 2024, as long-position liquidations surged. This was triggered by plummeting prices, which started out a chain reaction of automated margin calls and forced liquidations. According to a CoinDesk report, these liquidations stemmed from overleveraged bets after ETH’s rally and an S&P 500 overnight drop that weighed on risk assets. CoinGlass data cited by Decrypt showed about $900M in bullish bets wiped out.
As of writing (8:05 AM UTC), CoinGlass shows $836.42M total liquidations from ~185,320 traders in 24h. The single largest order was HTX-BTC-USDT, worth $39.24M. ETH liquidations led at $277.34M, ahead of BTC’s $273.09M. SOL, XRP, and DOGE combined for another $90M.
Analysts Point to Leverage and Macro Pressures
A trader from on-chain options platform Derive.xyz emphasized the reason behind the massive liquidations recorded, pointing to leverage and external market forces, noting:
This sharp move appears to be the result of overleveraged positioning, particularly following ETH’s recent run-up, and an overnight dip in the S&P 500, which weighed on risk assets more broadly.
Cointelegraph noted Bitcoin hit its lowest in 7 weeks, under $109K, erasing gains since Powell’s dovish Jackson Hole comments, fueling the liquidation cascade.
BTC, ETH, DOGE See Steep Losses
As of now, BTC trades ~$110,130 (−1.4% 24h, high $112,820). ETH trades ~$4,417.46 (−4%, range $4,667.76–$4,341.54). DOGE trades ~$0.2106 (−4.6%, high $0.2213), per TradingView and CoinGecko.
Other reports show broader losses: ETH down almost 8%, DOGE, SOL, ADA, and LINK all −6–8%.
What’s Next
The sell-off shows how leverage plus volatility can cascade into outsized moves. With BTC under key levels and $900M+ longs liquidated, stability is fragile. The upcoming options expiry (~$14.6B BTC/ETH contracts) could shape direction depending on hedging flows. The key question: is this a temporary washout or the start of deeper retracement?
Summary
Crypto markets erased $900M in longs, led by ETH ($277M) and BTC ($273M). BTC fell below $109K (7-week low), ETH and DOGE dropped 7–8%. The wipeout followed ETH’s run-up, Powell’s Jackson Hole rally unwind, and an S&P 500 dip that pressured risk assets.
The largest liquidation order was a $39M BTC trade on HTX. With options expiry near ($14.6B), direction now hinges on whether this capitulation sparks stabilization or extends into further downside.
