Liquidation

Liquidation occurs when a trader’s collateral is no longer sufficient to cover their leveraged position’s losses, triggering an automated forced closure by the exchange's liquidation engine. It is a critical risk-management mechanism that ensures the solvency of lending protocols and derivative platforms. In 2026, the focus has moved toward MEV-resistant liquidation models that protect users from predatory "cascades." This tag provides essential information on maintenance margins, health factors, and how to avoid liquidation in high-volatility environments.

14942 Articles
Created: 2026/02/02 18:52
Updated: 2026/02/02 18:52
Bitcoin ETFs Surge Back With Record $241M Inflows – ETH ETFs Still Bleed

Bitcoin ETFs Surge Back With Record $241M Inflows – ETH ETFs Still Bleed

Bitcoin exchange-traded funds (ETFs) bounced back sharply on September 24, recording $241 million in net inflows after two straight days of investor withdrawals, according to data from SoSoValue. The turnaround comes after a combined $244 million in outflows on September 23 and a larger $439 million exit the day before, as markets adjusted to the Federal Reserve’s recent rate cut and awaited fresh U.S. inflation data. Bitcoin ETF Holdings Near $150B After Strong Daily Inflows BlackRock’s iShares Bitcoin Trust (IBIT) led yesterday’s inflows with $128.9 million, bringing its cumulative net inflows to $60.78 billion and total net assets to $87.2 billion. Ark Invest and 21Shares’ ARKB followed with $37.7 million in net inflows, raising its historical total to $2.18 billion. Fidelity’s FBTC also attracted $29.7 million, while Bitwise’s BITB added $24.7 million.Bitcoin ETFs Record. September 24 Source: SoSoValue Smaller inflows were recorded by VanEck’s HODL at $6.4 million and Grayscale’s BTC fund at $13.5 million. In total, Bitcoin spot ETFs now hold $149.7 billion in assets, equal to 6.62% of Bitcoin’s total market capitalization. Cumulative inflows have reached $57.49 billion, while daily trading volume on September 24 came in at $2.58 billion. The renewed demand highlights the resilience of Bitcoin products following heavy redemptions earlier in the week. On September 23, Bitcoin ETFs lost $103.6 million, led by Fidelity’s FBTC with $75.6 million in outflows and ARKB with $27.9 million. That followed an even steeper session on September 22, when Bitcoin funds shed $363 million, including $276.7 million from Fidelity’s FBTC alone. Ethereum ETFs, however, continued to see outflows. On September 24, ETH products recorded $79.4 million in net redemptions, extending a trend of sustained investor withdrawals.Ethereum ETFs Record. September 24. Source: SoSoValue Fidelity’s FETH saw the largest daily outflow at $33.2 million, followed by BlackRock’s ETHA with $26.5 million and Grayscale’s ETHE with $8.9 million. Bitwise’s ETHW lost $4.5 million, while VanEck’s ETHV and Grayscale’s ETH fund reported no significant flows. The redemptions build on heavy losses earlier in the week. On September 23, Ethereum ETFs saw $140.7 million in outflows, with Fidelity’s FETH leading at $63.4 million, followed by $36.4 million from Grayscale’s ETH product and $23.9 million from Bitwise’s ETHW. A day earlier, on September 22, ETH funds posted $76 million in outflows, again led by Fidelity. As of September 24, Ethereum spot ETFs hold $27.4 billion in assets, representing 5.45% of ETH’s total market value. Cumulative inflows now stand at $13.6 billion, despite the recent wave of redemptions. Institutional Pause Weighs on Bitcoin—Armstrong Still Predicts $1M BTC Institutional demand for Bitcoin has cooled after a strong start to September, with spot ETF inflows falling sharply. According to Glassnode, net inflows dropped 54% last week to $931.4 million from $2.03 billion the week before. Analysts said the slowdown points to a pause in institutional buying, even as overall accumulation remains intact. Earlier this month, Bitcoin’s climb toward $118,000 was matched by heavy ETF inflows, including $741 million in a single day. But momentum has faded as retail traders continue selling. CryptoQuant’s spot taker CVD indicator has remained sell-dominant since mid-August, raising concerns of a deeper correction into October if flows do not recover.Source: CryptoQuant Bitcoin is currently trading below $110,600, down 6.9% in 24 hours. Ethereum has also faced heavy pressure. Ether fell below $4,000 on Thursday, triggering a $36.4 million liquidation of one large position and contributing to a $331 million long squeeze in the past day, CoinGlass data shows.Source: CoinGlass Over the week, ETH traders have seen $718 million in long liquidations versus $79.6 million in shorts. The token is trading at $3,882, down 7.3% in 24 hours and 15% over the week. Despite short-term weakness, optimism persists. Coinbase CEO Brian Armstrong said Bitcoin could reach $1 million by 2030, citing progress on U.S. legislation, potential government adoption, and rising institutional interest. With ETF custody already concentrated in Coinbase, he argued that long-term fundamentals remain strong as supply tightens and sovereign demand potentially emerges

Author: CryptoNews
Crypto Liquidations Top $1B as Bitcoin, Ether, Solana Selloffs Worsen

Crypto Liquidations Top $1B as Bitcoin, Ether, Solana Selloffs Worsen

A rough early session for crypto markets took a turn for the worse in U.S. afternoon hours Thursday, with bitcoin (BTC) tumbling below $109,000, its weakest price in nearly a month.Ether (ETH) plummeted 8% through the past 24 hours rapidly approaching $3,800, erasing gains since early August. It's now has lost 22% since its record highs last month. Solana (SOL), changing hands above $250 only two weeks ago, plunged below $200, down another 8% today. The CoinDesk 20 Index was down 6%.The sharp move lower across the board triggered a widespread leverage flush on derivatives markets, liquidating over $1.1 billion worth of leveraged trading positions, CoinGlass data shows. Ether led liquidations with over $400 million long positions, or bets on higher prices, being wiped out, followed by bitcoin's $265 million.Crypto equities also took a hit. Michael Saylor's Strategy (MSTR), the largest corporate owner of BTC, sunk as much as 10% during the session to five-month low. The stock, which is often seen as a leveraged bet on bitcoin's price, gave up all of this year's gains and is now 1.5% down year-to-date, while BTC is still holding on 16% advance during the same period.Ether treasury firms Bitmine (BMNR) and Sharplink Gaming (SBET) were down 7%-8%,as were bitcoin miners MARA Holdings. (MARA) and Riot Platforms (RIOT).With Thursday's nosedive, BTC is now on the brink of taking out the lows of late August-early September, when it bottomed just above $107,000. That price level could serve as support at least for a bounce, with order books also showing a liquidity cluster which could absorb selling pressure, CoinDesk reported on a Hyblock Capital analysis.Read more: Here Are the 3 Make-Or-Break Bitcoin Price Floors as BTC Sell-off Gathers Steam

Author: Coinstats
Crypto Market Drops as Upbeat US Economic Data Dashes Rate Cut Hopes

Crypto Market Drops as Upbeat US Economic Data Dashes Rate Cut Hopes

The post Crypto Market Drops as Upbeat US Economic Data Dashes Rate Cut Hopes appeared on BitcoinEthereumNews.com. Bitcoin plunged under $111,000, while Ethereum dipped under $4,000. The crypto market dipped on Thursday after a few days of cautious drifting, as better-than-expected U.S. growth and unemployment numbers reduced the odds of further interest rate cuts from the Federal Reserve. According to data from The Defiant’s price page, Bitcoin (BTC) is trading at $110,300, down 3% on the day, while Ethereum (ETH) is down 6.5% at $3,910, pushing its weekly decline to 15%. ETH Chart Among the top 10 altcoins by market capitalization, Solana is down the most, with an 8% decline to $197. XRP is down 6% at $2.78, and BNB slipped 5% to $968. Nearly all of the Top 100 digital assets by market capitalization are deep in the red, with Story (IP) being the biggest loser of the day, down 28% at $8.73. Glassnode analysts explained in a Thursday X post that Bitcoin’s accumulation trend score has softened, with muted conviction from large cohorts despite elevated prices, which means that the market is “vulnerable to supply overhang unless demand re-intensifies.” BTC Accumulation Trend Score On top of that, the analysts noted that BTC has slipped below the 0.95 cost basis quantile, a key risk band that often marks profit-taking zones. “Reclaiming it would signal renewed strength, but failure to do so risks a drift toward lower supports around $105k–$90k,” Glassnode said in another X post. Analysts at QCP Capital wrote in a Thursday research note that the crypto market will likely perform better in Q4, which is historically a “more constructive period,” adding that markets are “pricing in two further rate cuts of 25 bps in October and December.” Liquidations, ETFs, and Macro In the past 24 hours, more than $800 million in leveraged positions were liquidated, almost triple the amount recorded on Wednesday, according to…

Author: BitcoinEthereumNews
XRP Futures Surge on CME, Raising Questions About Stability at $2 Mark

XRP Futures Surge on CME, Raising Questions About Stability at $2 Mark

Traders are now watching how leverage is stacking up at critical price levels, a pattern that has previously triggered sharp […] The post XRP Futures Surge on CME, Raising Questions About Stability at $2 Mark appeared first on Coindoo.

Author: Coindoo
Ethereum Drops Below $4,000 as $320 Million in Longs Liquidated, Signals Market Cool Down, Slow Institutional Demand

Ethereum Drops Below $4,000 as $320 Million in Longs Liquidated, Signals Market Cool Down, Slow Institutional Demand

Ethereum’s drop below $4,000 and the consequent $320 million in liquidations of long positions indicate the risky side of crypto leveraged trading.

Author: Blockchainreporter
Citi says stablecoins could hit $4 trillion in issuance by 2030

Citi says stablecoins could hit $4 trillion in issuance by 2030

The stablecoins market could climb to $4 trillion in total issuance by the year 2030, according to a new report from Citi. The report was written by Ronit Ghose, head of future of finance at Citi Institute, and Ryan Rugg, head of crypto at Citi Services, who both see a base-case of $1.9 trillion and […]

Author: Cryptopolitan
Bitcoin Crashes Below $110K After Sharp Market Selloff

Bitcoin Crashes Below $110K After Sharp Market Selloff

According to liquidation trackers, more than $55 million in Bitcoin positions were wiped out in the past 24 hours, with […] The post Bitcoin Crashes Below $110K After Sharp Market Selloff appeared first on Coindoo.

Author: Coindoo
Massive Crypto Futures Liquidation: $717 Million Wiped Out in 24 Hours

Massive Crypto Futures Liquidation: $717 Million Wiped Out in 24 Hours

BitcoinWorld Massive Crypto Futures Liquidation: $717 Million Wiped Out in 24 Hours The cryptocurrency market is a dynamic space, often characterized by rapid price swings and significant events. Recently, traders witnessed a staggering financial tremor: a massive crypto futures liquidation event that sent ripples across major exchanges. Imagine millions of dollars vanishing in moments – that’s precisely what happened, leaving many in awe and others counting their losses. What is Crypto Futures Liquidation and Why Does It Matter? Before diving into the specifics of the recent events, it’s crucial to understand what crypto futures liquidation entails. In simple terms, futures contracts allow traders to bet on the future price of a cryptocurrency without owning the underlying asset. They often use leverage, meaning they trade with borrowed money to amplify potential gains. However, leverage also magnifies losses. Margin Calls: When the price of an asset moves against a trader’s leveraged position, their margin (the collateral they put up) starts to deplete. Automatic Closure: If the loss reaches a certain point, the exchange automatically closes the position to prevent the trader from losing more than their initial margin. This forced closure is known as liquidation. Market Impact: Large-scale liquidations can create a cascade effect, pushing prices down further as these positions are closed, which in turn triggers more liquidations. Therefore, a significant crypto futures liquidation event indicates high volatility and can signal shifts in market sentiment. Unpacking the Recent Crypto Futures Liquidation Spree The past 24 hours have been particularly turbulent for futures traders. Major exchanges reported an astonishing $137 million worth of futures contracts liquidated in just a single hour. This rapid-fire event was merely a snapshot of a larger trend, as the total figure for the past 24 hours soared to an eye-watering $717 million. This substantial amount highlights the intense price movements and leveraged trading activity that characterized the market during this period. Such massive liquidations typically occur when an unexpected price movement catches a large number of leveraged positions off guard. Traders betting on one direction find their positions underwater as the market shifts sharply in the opposite direction. This often leads to a ‘long squeeze’ (when prices fall, liquidating long positions) or a ‘short squeeze’ (when prices rise, liquidating short positions). How Does This Impact Crypto Traders? For individual traders, these liquidation events carry significant implications. The immediate consequence for those caught on the wrong side of the market is the loss of their staked capital. Moreover, the fear and uncertainty generated by such large liquidations can influence market psychology, potentially leading to further selling pressure as traders become more risk-averse. Understanding the dynamics of crypto futures liquidation is vital for anyone participating in the derivatives market. It underscores the inherent risks of leveraged trading and the importance of robust risk management strategies. While the allure of amplified gains is strong, the potential for rapid and substantial losses is equally present. Navigating Volatility: Strategies After a Crypto Futures Liquidation In a market prone to such dramatic swings, how can traders protect themselves? Adopting a disciplined approach is paramount. Here are some actionable insights: Effective Risk Management: Always define your risk tolerance before entering a trade. Never risk more capital than you can afford to lose. Utilize Stop-Loss Orders: These automated orders help limit potential losses by closing a position once it reaches a pre-defined price. This is a critical tool to prevent being entirely wiped out by a sudden market move. Manage Leverage Wisely: While leverage can be tempting, using it judiciously is key. Higher leverage means higher risk of liquidation. Diversify Your Portfolio: Do not put all your eggs in one basket. Diversifying across different assets can help mitigate risks associated with single-asset volatility. Stay Informed: Keep an eye on market news, technical indicators, and broader economic trends that can influence cryptocurrency prices. These strategies are not foolproof but can significantly reduce exposure to the severe impacts of a crypto futures liquidation event. The recent $717 million crypto futures liquidation serves as a stark reminder of the volatile nature of cryptocurrency derivatives markets. While opportunities for substantial gains exist, they are invariably accompanied by significant risks. For both seasoned traders and newcomers, a clear understanding of liquidation mechanisms, coupled with stringent risk management practices, is essential for navigating these turbulent waters successfully. Staying informed and trading responsibly will always be your best defense against unexpected market shocks. Frequently Asked Questions (FAQs) Q1: What exactly causes a crypto futures liquidation? A: A crypto futures liquidation occurs when a trader’s leveraged position loses so much value that their margin (collateral) can no longer cover potential losses. The exchange then automatically closes the position to prevent further debt. Q2: How does leverage contribute to futures liquidation? A: Leverage allows traders to control larger positions with a smaller amount of capital. While this can amplify profits, it also significantly magnifies losses, making positions more susceptible to liquidation with even small adverse price movements. Q3: Are all cryptocurrencies equally affected by futures liquidation events? A: No, the impact varies. Cryptocurrencies with higher trading volume and more active futures markets, such as Bitcoin and Ethereum, often see larger liquidation amounts during volatile periods compared to smaller, less liquid altcoins. Q4: Can I prevent my futures position from being liquidated? A: You can minimize the risk by using lower leverage, setting stop-loss orders, and adding more collateral (margin) to your position if it approaches liquidation levels. However, no method guarantees complete prevention in extreme market conditions. Q5: What’s the difference between a long squeeze and a short squeeze in the context of liquidation? A: A long squeeze happens when prices drop sharply, forcing the liquidation of ‘long’ positions (bets on rising prices). A short squeeze occurs when prices surge, forcing the liquidation of ‘short’ positions (bets on falling prices). If you found this article insightful, consider sharing it with your network! Understanding market dynamics is crucial for everyone in the crypto space. Help spread awareness by sharing this piece on your social media channels. To learn more about the latest crypto market trends, explore our article on key developments shaping Bitcoin price action. This post Massive Crypto Futures Liquidation: $717 Million Wiped Out in 24 Hours first appeared on BitcoinWorld.

Author: Coinstats
Ethereum Market: Something Alarming Is Coming

Ethereum Market: Something Alarming Is Coming

The post Ethereum Market: Something Alarming Is Coming appeared on BitcoinEthereumNews.com. ETH’s freefall Ethereum might stop here As it hovers around the $4,000 mark, Ethereum is displaying significant signs of weakness. Technical indicators and liquidity data suggest an unsettling situation. Given the clustering of liquidity on the order books, and the chart’s indication that the asset has broken out of its consolidation pattern, the situation appears risky for bulls. ETH’s freefall ETH has left the symmetrical triangle that held price action for weeks on the daily chart. Rising sell volume coincided with the breakdown, confirming bearish pressure. Since the 20-day and 50-day EMAs, which were serving as short-term supports, have been breached, ETH is now depending on the 100-day EMA as a last resort before possibly plunging to the 200-day EMA close to $3,400. Ethereum might go back to even deeper zones if this level does not work. ETH/USDT Chart by TradingView An even more alarming picture is presented by the liquidity heatmap. There is a significant concentration of buy liquidity between $3,800 and $3,500, which seems to be a price action magnet. Liquidity in cryptocurrency markets drives movement, and since sellers are in charge, Ethereum is probably going to be drawn in the direction of this dense order block. Bulls face a dilemma because a liquidity pool of this kind has the potential to either spark a rebound or act as a trap that quickens a downward liquidation event. Ethereum might stop here Concerns are heightened by Ethereum’s RSI, which is getting close to oversold conditions but has not yet displayed any significant reversal signals. This implies that momentum continues to favor the negative. An imbalance can also be seen in trading volumes, where attempts to buy are consistently outweighed by sales. To put it briefly, Ethereum is at a turning point. A deeper correction may occur in the upcoming…

Author: BitcoinEthereumNews
Crypto crash: Why are altcoins like Avalanche, Aster, and Dogecoin going down?

Crypto crash: Why are altcoins like Avalanche, Aster, and Dogecoin going down?

This week’s crypto crash continued today, Sept. 25, with Bitcoin plunging to $110,000 and the market capitalization of all coins falling to $3.81 trillion. Only five top-100 coins were in the green today, with popular tokens like Avalanche (AVAX), Aster…

Author: Crypto.news