The crypto market has been rocked by a wave of sell-offs, with total liquidations surpassing $1.34 billion in just 24 hours. As Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) tumbled, traders speculated that major exchanges like Binance and Bybit were manipulating the market by wiping out long positions.
Mass Liquidations Shake the Market
According to Coinglass data, a staggering 367,789 traders saw their long and short positions liquidated in the past 24 hours, marking one of the most brutal sell-offs in recent months. The largest single liquidation order occurred on Binance, where a BTC/USDT position worth $20.8 million was liquidated.
Key highlights from the liquidation data:
- Total liquidations: $1.34 billion
- Long liquidations: $1.24 billion (92% of total liquidations)
- Short liquidations: $96.4 million
Which Exchanges Saw the Most Liquidations?
- Bybit – $500 million in liquidations (96% were long positions)
- Binance – $246 million liquidated (90% were long positions)
- Other exchanges also recorded over 90% long position liquidations
Bybit, which recently suffered a $1.4 billion hack, saw the highest liquidation volume, further pressuring its liquidity.
Traders Accuse Exchanges of Market Manipulation
Crypto traders on X (formerly Twitter) have begun accusing centralized exchanges of intentionally triggering long liquidations. MartyParty, a well-known trader, blamed Binance for “capitulating the market”, suggesting that the exchange was forcing liquidations to control the market.
“Leverage traders that have any liquidity left, learn the lessons, use low leverage only. 1.8 to 3x max,” he warned.
However, an analysis by Coinank suggests that the BTC liquidation map doesn’t show significant profit potential for liquidating long positions, raising doubts about the claims of intentional market manipulation.
Why is Crypto Crashing Today?
- Bitcoin’s Drop Below $90K
- BTC has fallen 6% in 24 hours, hitting $88,615, its lowest level since November 2024.
- Traditionally, when Bitcoin drops, the broader market follows, leading to a cascading effect on altcoins like Ethereum (-10%) and Solana (-13%).
- Binance and Bybit Selling Crypto Holdings
- Binance offloaded millions in ETH and SOL, sparking fears of a major market shake-up.
- Bybit liquidated $260 million worth of assets, possibly to repay loans from Binance and Bitget after its recent hack.
- Trump’s 25% Trade Tariffs on Canada & Mexico
- President Trump reaffirmed his commitment to the trade tariffs, spooking global markets.
- In the past, such geopolitical events have increased demand for Bitcoin as a hedge, but this time, crypto is following stock market trends downward.
What’s Next for Crypto?
With Bitcoin struggling to hold above $89,000, traders are watching closely for signs of further downside or a potential rebound. The liquidation frenzy suggests extreme volatility, and unless BTC stabilizes, the market may remain under pressure in the coming days.
For now, investors remain on edge, as they try to navigate uncertainty, liquidations, and growing concerns over exchange activity.
