Vincent Liu, Kronos Research’s Chief Investment Officer, told CryptoSlate that the market pullback was caused by the unwinding of leveraged long positions, which triggered a cascade of liquidations.
He added:
“[The market’s] thinning liquidity, shallow order books, and sharp volatility are amplifying the downside pressure.”
Valentin Fournier, Lead Research Analyst at BRN, said:
“Despite near-term weakness, the underlying structure remains bullish. Corporate demand continues to increase, and the reduced FTX repayment burden eases one of the market’s key downside risks.”
Long traders, those betting on price increases, bore the brunt of the damage, losing $840 million. Short positions accounted for the remaining $135 million in losses.
Ethereum traders were hit the hardest, with liquidations totaling around $200 million. XRP followed with $115 million in losses. Other altcoin traders collectively saw $177 million wiped out.
Meanwhile, Bitcoin traders faced comparatively modest losses of $84 million.
The largest single liquidation event occurred on Binance, involving a $2.96 million long position on the BTC/USDC pair.
