Crypto Markets Plummet Amid Widespread Long Liquidations

Crypto markets experienced a significant downturn yesterday as a high volume of long positions was unwound across various assets. According to data from Coinglass, over $600 million in leveraged positions were forcibly closed, with Bitcoin and Ethereum being the primary drivers of the decline.

The sell-off was largely mechanical, triggered by price losses that prompted cascading liquidations in derivatives markets. This had a ripple effect across the broader market, causing most large-cap tokens to trade lower.

A heatmap of the crypto market further reinforces this narrative, showing a broad risk-off tone with Bitcoin and Ethereum posting losses above 4%. Other major assets such as Solana, BNB, and XRP also declined, while stablecoins remained flat.