The crypto market experienced a violent shake-up in the last 24 hours.

Bitcoin, Ethereum, and several altcoins triggered a cascade of long liquidations close to $600 million, highlighting an excess of leverage and a poor reading of risk by traders.

What exactly happened

According to data from CoinGlass:

Total liquidations: +$650M

Long positions: ~$584M

👉 Almost 90% of the total, a clear signal of imbalance

This type of event occurs when the price falls enough to force the automatic closure of leveraged positions, further accelerating the decline.

Ethereum leads the damage (and that matters)

Unlike usual, Ethereum was the biggest contributor:

ETH: +$235M in liquidations

BTC: ~$186M

This indicates that:

Leverage was more concentrated in ETH

The drop in ETH was more aggressive and rapid

Many traders underestimated the relative risk compared to Bitcoin

Altcoins: who suffered the most

Among the main alternatives:

Solana: $37M

XRP: $16M

Dogecoin: $12M

SOL, despite falling less percentage-wise, had more leveraged exposure, which explains its leadership in liquidations among altcoins.

The on-chain signal that did not go unnoticed

Glassnode showed that Bitcoin fell below the Realized Price Active, currently around $87,900.

What does this mean?

It is the average base cost of active participants

BTC trading below implies net unrealized losses

Historically, these areas:

They increase emotional pressure

But they also often mark absorption zones if there is no systemic panic

The important thing: these are NOT long-term holders

A key point: 👉 It was not long-term holders who sold.

They were leveraged traders.

The liquidations:

They do not reflect structural abandonment

They do reflect excess poorly managed risk

They act as a forced reset of the market

Conclusion

This event is not a sign of collapse.

It is a cleaning of leverage.

The market was tilted in one direction

Volatility triggered liquidations in chains

The price returned to areas where risk is redistributed

📌 After large liquidations:

The market tends to become more stable

The next move depends on whether real, unleveraged demand appears

The question now is not what was liquidated, but who absorbs what is left.

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