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According to data from CoinGlass, the amount of liquidations of perpetual futures on crypto assets has exceeded half a billion in the past 24 hours. This could be the largest liquidation event since the start of 2025, with $461.29 million lost in longs and $71.39 million in shorts.
Amid the sell-off, the price of the leading cryptocurrency, Bitcoin (BTC), fell to its lowest level in two months. The last time Bitcoin traded at such a low was in mid-November. The difference is that, back then, the price of BTC was storming higher. Now, however, we are seeing the cryptocurrency break below this price point.
Gamza Khanzadaev
Traders like Peter Brandt see the recent sell-off as a confirmation of the head and shoulders pattern. If validated, the price of Bitcoin may only see the end of its suffering at around $77,000.
Coincidentally or not, this is exactly the level of the unclosed gap on the CME for Bitcoin futures. It was formed by the rapid pumping of the asset in November and was left unclosed, acting as a magnet for the price to return one day. One might think it is about time.
Altcoin season — Delayed?
As you can see, nobody is left without wounds, and both bears and bulls — especially the latter — are being punished by the market's fall.
It is not even the overleveraged positions that fell first but the leverage itself, as the price of most alternative cryptocurrencies experience a double-digit percentage drop, and even those who thought their leverage was safe are getting margin call notices.
Unsurprisingly, $127.86 million of the total is accounted for by "others," which includes all the small-cap altcoins. These are the ones that suffered the most from the crash.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Godfrey Benjamin
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