Blab Crypto
Bitcoin Faces Record Liquidations Amid Rising Long Positions and Market Stress
Bitcoin’s futures market has been on fire. Over the past 24 hours, CoinGlass data shows that $169.28 million worth of BTC futures positions were liquidated—a single‑day peak that eclipses the June 4 crash that sent the price below $60 k.
In the wider crypto arena, total liquidations climbed to $612.04 million, of which $548.72 million were tied to bullish bets. The pattern confirms that long positions are the primary source of losses, a trend that has persisted for several weeks.
The surge in long‑side liquidations has sparked speculation about a potential long squeeze. Glassnode notes that traders on the decentralized exchange Hyperliquid are piling on long exposure even as the price trend stays bearish. With higher leverage and scant spot demand, a modest dip could trigger a cascade of liquidations.
AMBCrypto echoes this concern, pointing to rising leverage levels and weak spot demand as a recipe for a liquidation event in the coming weeks. The platform cautions that dip‑buying strategies may backfire if market conditions do not improve.
Beyond the raw liquidation figures, other metrics signal mounting downward pressure. Crypto analyst CW8900 observed that Bitcoin’s supply in profit has slipped below a long‑term trendline that has been ascending since 2012—a sign of weakness that outstrips prior cycles.
Axel Adler Jr. applied the adjusted NUPL (aNUPL) metric to gauge unrealized losses. Over the last 90 days, the aNUPL line stayed below zero for most of the period, indicating that the market has been operating with average unrealized losses. However, the current reading of –0.14 is less severe than the –0.4 levels seen during earlier bottom‑cycle phases.
Realized capital drawdowns paint a similar picture for short‑term holders. The short‑term holder realized cap drawdown has deepened to 56 %, up from –26 % three months ago. In contrast, the long‑term holder realized cap drawdown remains near zero, suggesting that long‑term investors are holding steady while short‑term participants are losing ground.
Taken together, these metrics point to a market under stress, particularly for short‑term holders, while long‑term investors appear resilient. The data also imply that the market has not yet hit the extreme capitulation levels that marked the bottoms of previous cycles.
The current environment raises red flags for traders who have taken long positions in anticipation of a rebound. If the price continues to dip, the combination of high leverage and low spot demand could unleash a chain reaction of liquidations, further depressing the market.
Regulators and market participants are keeping a close eye on the situation. While no official regulatory action has been announced, the volatility and liquidation volume underscore the importance of disciplined risk management in leveraged trading.
In summary, Bitcoin’s recent liquidation activity, coupled with rising long‑side exposure on platforms such as Hyperliquid, signals heightened market risk. Short‑term holders are facing significant drawdowns, whereas long‑term holders remain largely unaffected. The market has not yet reached the bottom‑cycle extremes of past downturns, but the potential for a long squeeze remains a concern for participants.
The story will continue to unfold as price movements, leverage levels, and market sentiment shift. Traders and investors should stay vigilant and weigh the implications of high‑leverage positions in a market that remains under pressure.
In the wider crypto arena, total liquidations climbed to $612.04 million, of which $548.72 million were tied to bullish bets. The pattern confirms that long positions are the primary source of losses, a trend that has persisted for several weeks.
The surge in long‑side liquidations has sparked speculation about a potential long squeeze. Glassnode notes that traders on the decentralized exchange Hyperliquid are piling on long exposure even as the price trend stays bearish. With higher leverage and scant spot demand, a modest dip could trigger a cascade of liquidations.
AMBCrypto echoes this concern, pointing to rising leverage levels and weak spot demand as a recipe for a liquidation event in the coming weeks. The platform cautions that dip‑buying strategies may backfire if market conditions do not improve.
Beyond the raw liquidation figures, other metrics signal mounting downward pressure. Crypto analyst CW8900 observed that Bitcoin’s supply in profit has slipped below a long‑term trendline that has been ascending since 2012—a sign of weakness that outstrips prior cycles.
Axel Adler Jr. applied the adjusted NUPL (aNUPL) metric to gauge unrealized losses. Over the last 90 days, the aNUPL line stayed below zero for most of the period, indicating that the market has been operating with average unrealized losses. However, the current reading of –0.14 is less severe than the –0.4 levels seen during earlier bottom‑cycle phases.
Realized capital drawdowns paint a similar picture for short‑term holders. The short‑term holder realized cap drawdown has deepened to 56 %, up from –26 % three months ago. In contrast, the long‑term holder realized cap drawdown remains near zero, suggesting that long‑term investors are holding steady while short‑term participants are losing ground.
Taken together, these metrics point to a market under stress, particularly for short‑term holders, while long‑term investors appear resilient. The data also imply that the market has not yet hit the extreme capitulation levels that marked the bottoms of previous cycles.
The current environment raises red flags for traders who have taken long positions in anticipation of a rebound. If the price continues to dip, the combination of high leverage and low spot demand could unleash a chain reaction of liquidations, further depressing the market.
Regulators and market participants are keeping a close eye on the situation. While no official regulatory action has been announced, the volatility and liquidation volume underscore the importance of disciplined risk management in leveraged trading.
In summary, Bitcoin’s recent liquidation activity, coupled with rising long‑side exposure on platforms such as Hyperliquid, signals heightened market risk. Short‑term holders are facing significant drawdowns, whereas long‑term holders remain largely unaffected. The market has not yet reached the bottom‑cycle extremes of past downturns, but the potential for a long squeeze remains a concern for participants.
The story will continue to unfold as price movements, leverage levels, and market sentiment shift. Traders and investors should stay vigilant and weigh the implications of high‑leverage positions in a market that remains under pressure.
