Crypto liquidation over $1b, why is crypto crashing?

The cryptography market is in a generalized state of panic, because total cryptography liquidations reached more than $ 1.30 billion in the period of 24 hours. The merchants on X accuse long liquidation and market manipulation “capsules” scholarships.

According to data DE CARGLASS, in the last 24 hours, 367,789 traders have seen their long and short positions liquidated, with total liquidations reaching $ 1.34 billion. Until now, the largest single liquidation order has occurred on Binance – BTCUSDT, with a transaction value of $ 20.80 million.

In the last 8 hours, at least $ 235 billion has been wiped out of the market capitalization of cryptography, equal to a drop of almost 9%. The main cryptocurrencies like Bitcoin (BTC), Ethereum (Ethn), Ripple (Xrp) and Solana (GROUND) have all become red during the last day of negotiation after these mass liquidations.

At the time of the press, long liquidations reached $ 1.24 billion, far exceeding the amount of short liquidations which currently amount to $ 96.4 million. Most liquidations come from Go throughWho has just started to recover from a massive hack of $ 1.4 billion, contributing to nearly $ 500 million in liquidations in the last 12 hours. According to CorciLass, 96% of liquidations on the support are long.

Second place is binance with $ 246 million in liquidations. As part of it, the vast majority of binance liquidations are the longest, in particular around 90%. The same can be said of the other exchanges on the list, which saw on average more than 90% of their long -liquidated positions.

Long liquidations are positions occupied by merchants betting on “the long game” because they provide an increase in prices. If the price of the asset falls far, exceeding the defined margin, the exchange of crypto will automatically close these long positions to avoid other losses.

X traders have started to speculate that exchanges “eliminate” long positions in order to manipulate the market. A merchant, Marcure, accused Binance of “market capulation” in order to liquidate more positions, calling centralized exchanges to discourage crypto traders from holding long positions.

“Lever traders who have liquidity, learn lessons, use a low lever effect only. 1.8 to 3x max, “he warned his disciples.

On the other hand, according to CoïnalThe Bitcoin Bitcoin liquidation card shows that the main drop in prices of the BTC “does not offer as much profit” of the liquidation of long positions compared to “price increasing to liquidate short positions”. Bitcoin has fallen Below $ 90,000 for the first time since November of last year.

Although there has been no conclusive evidence to support the affirmations that centralized exchanges close long liquidations, it is clear that long positions constitute the majority of liquidations in the crash of the market today’s cryptography.

Why is the crypto broken down today?

As mentioned earlier, Bitcoin took a dive of more than 6%, as a fall as low as $ 88,615 in the last 24 hours. BTC is currently negotiated at $ 89,742. Often considered the cornerstone of the crypto, a drop in the value of Bitcoin generally leads to the rest of the main parts and the altcoins with it.

The decrease in bitcoin arrives at a particular moment, like Michael Saylor, CEO of the previous strategy bought 20,356 Bitcoin worth almost $ 2 billion at the time of purchase. A large purchase of BTC generally points out an increase in prices, but this is clearly not the case today.

At the time of the press, Solana dropped by more than 13%, lowering as low as $ 134.97 in the last day. Likewise, Ethereum has also taken the step of around 10%, falling to $ 2,337 in the last 24 hours of negotiation.

In addition, major crypto exchanges such as Binance and Bybit have been seen selling many of their cryptographic participations. February 25, Binance dump Millions of Ethereum and Solana of their portfolio, which has led to many speculating investors that the exchange is preparing for a massive shock on the market.

Bybit, despite having undergone an Ethereum hack of $ 1.4 billion, recently sold about $ 260 million in assets. It is possible that the increase in the activity of the portfolio comes from the appeal back Loans from other exchanges like Bitget and Binance, which helped maintain its liquidity after the attack.

Another possible trigger is President Trump statement that the 25% commercial prices on Canada and Mexico will continue as planned. Trump’s tariff announcement shaken not only the stock market, but it also strangely affected the cryptography market.

In previous cases, commercial prices would result in an increase in the interest of alternative assets such as bitcoin and other cryptocurrencies while conventional traders seek to store their funds in “package assets” which are not as affected by inflation. However, he seems to have the opposite affect lately.