Leverage Wiped Out in Hours
The market’s attempt to reclaim highs hit a brick wall today. Bitcoin’s sharp rejection at the $85,000 level triggered a cascade of forced selling, wiping out over $550 million in leveraged positions in the last 24 hours. The sell-off was swift and merciless, disproportionately punishing bullish traders who had piled into long positions expecting a breakout.
Liquidity vanished instantly. As Bitcoin wicked down to a local low of $84,500, altcoins capitulated. Solana (SOL) tumbled 4% to test $120, while Ethereum (ETH) struggled to hold $2,800. The message from the order book is clear: risk appetite has evaporated.
The $11 Million Whale
The carnage wasn’t limited to retail minnows. Data from Coinglass reveals the single largest liquidation occurred on Binance. A massive $11.58 million BTC-USDT long position vaporized in seconds. In total, long positions accounted for nearly 87% of the day’s total liquidations.
“Leverage gets punished fast in this market. Volatility shows no mercy.”
This flush-out bears the hallmarks of a classic “leverage reset.” Open interest had ballooned to unsustainable levels, and without a fresh macro catalyst to drive spot buying, the weight of leveraged longs collapsed under its own gravity.
Institutional Signal Ignored
Perhaps the most telling signal is what the market didn’t react to. While prices cratered, reports surfaced that Intercontinental Exchange (ICE). The owner of the New York Stock Exchange, is in advanced talks to invest in crypto payments firm MoonPay at a $5 billion valuation. In a bull market, this level of institutional validation would send candles green. Today, it was drowned out by the sound of margin calls.
Traders are now eyeing the $84,000 support zone. If that level fails, the “buy the dip” narrative could quickly shift to capital preservation.
