The crypto market witnessed a sharp correction over the past 24 hours, triggering the liquidation of over $630 million in leveraged positions, mostly from bullish traders. Despite the turbulence, Bitcoin managed to remain relatively stable, holding above the $115,000 mark, while several major altcoins, including DOGE, SOL, and XRP, recorded losses of around 6%.
Bitcoin Leads in Stability Amid Liquidation Wave
Bitcoin’s price dropped to $115,200, giving up some of its recent gains. However, it showed more resilience compared to altcoins, which bore the brunt of the correction. Bitcoin’s market dominance slightly increased, signaling its continued strength during volatile periods. As traders rushed to exit leveraged positions, Bitcoin became a relative safe haven despite the market-wide downturn.
The sell-off caused long positions to account for more than $580 million of the total liquidations, according to data from Coinglass. The largest individual liquidation was a $13.7 million Ethereum long position on Binance, showing that the sudden drop caught many traders off guard.
Why Liquidations Matter
Liquidations in crypto occur when traders use leverage (borrowed money) and are forced to close positions due to their collateral falling below the required maintenance margin. This often leads to increased market volatility, as forced selling or buying adds sudden pressure on prices.
Large liquidation events, especially when one side (like longs) dominates, reflect an overleveraged market. These events can act as reset points where excess speculation is flushed out, paving the way for more sustainable price action. In this case, the heavy long liquidations indicate that traders were overly optimistic about a continued rally.
Ethereum, XRP, and Solana Follow the Downtrend
Ethereum (ETH) also declined, falling to around $3,687. Meanwhile, XRP dropped below the $3 mark, even though it recently saw positive headlines and investor interest. Solana (SOL) dipped to $170, and BNB, which recently crossed $855, pulled back to $780.
This broader drop in altcoins suggests that the correction was not limited to small-cap or speculative tokens. Even top-tier assets were impacted, though not as severely as some high-risk altcoins.
Speculative Tokens Hit the Hardest
High-volatility tokens like Fartcoin (FART) and Pump.fun (PUMP) faced the steepest corrections. These tokens, which are known for their speculative nature, saw rapid price drops as momentum faded. FART plunged 14%, nearing its 100-day exponential moving average (EMA), while PUMP continued sliding within a bearish descending channel. Jupiter (JUP) also lost support at its 200-day EMA.
Ryan Lee, Chief Analyst at Bitget, explained that these moves were not driven by structural weaknesses in the market but by short-term sentiment. “Tokens like Fartcoin and Pump.fun are more reflective of microcycles and not aligned with broader market trends,” he said. Lee added that the downturn is likely the result of profit-taking rather than a systemic collapse.
Bitcoin Still Anchors the Market
Despite the sharp sell-off in altcoins and high-risk tokens, Bitcoin’s strength remains a stabilizing factor in the current market. ETF inflows and steady macroeconomic indicators continue to support its price action. Analysts suggest that as long as Bitcoin holds above the $115,000 level, the overall market structure remains intact.
This level is now seen as a psychological and technical support zone. If Bitcoin breaks below it, further downside could occur, but for now, it appears to be holding firm. Market watchers view this stability as a sign that Bitcoin may continue to outperform altcoins in the near term, especially as sentiment resets after the leverage shakeout.
Key Takeaways
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Over $630 million in crypto liquidations occurred in the past day, mostly from long positions.
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Bitcoin fell to $115,200 but remained more stable than altcoins.
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DOGE, SOL, XRP, and ETH all dropped around 6%.
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Highly speculative tokens like FART, PUMP, and JUP saw steeper declines due to waning momentum.
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Analysts say the correction is more about sentiment and leverage than fundamental weakness.
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Bitcoin’s ability to hold the $115K support keeps the bullish structure intact.
As the dust settles from this round of volatility, all eyes remain on Bitcoin to see whether it continues to act as the market anchor or if more selling pressure will test its resilience.
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