🚨 $150B+ in Leverage Liquidations 📉💥
According to CoinGlass, over $150 billion worth of long and short positions have been wiped out this year, averaging $400-500 million per day. This shows how brutal and unstable the market structure has been.
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🔍 What’s Driving These Massive Liquidations?
1️⃣ Excessive Leverage
Traders are massively overleveraged on both sides.
Even small price moves trigger forced liquidations.
Market makers are exploiting this, pushing prices into liquidity zones.
2️⃣ Choppy, Range-Bound Markets
Sharp pumps → Instant dumps.
Fake breakouts → Quick reversals.
This market environment is destroying both longs and shorts, similar to late 2021-2022.
3️⃣ Liquidations = Fuel, Not Direction
Liquidations amplify moves, but don’t define trends.
Large liquidation clusters = local tops (long wipes) or local bottoms (short wipes).
After a flush, price often mean-reverts, trapping late traders.
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📊 Structural Takeaways:
High daily liquidations = unstable market.
Spot demand is still weak, unable to absorb forced selling.
Explains why rallies fade quickly and dumps bounce violently.
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🧠 Trading Implications:
❌ High leverage = low survival probability
✅ Best strategies:
Lower leverage
Spot accumulation at liquidation extremes
Trade after the wipeout, not before it
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🔑 :
$150B+ wiped out isn’t bullish or bearish — it’s a sign of a fragile market dominated by leverage. Until leverage resets and spot demand takes over, volatility and fake-outs will remain the norm.
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