Altcoins Tumble 7%, Wiping Out $850M in Bullish Bets

Edgen Crypto

·Jan 31 2026, 16:28

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Key Takeaways

A sharp 7% decline in major altcoins like Ether and Solana on January 31 triggered a cascade of liquidations, wiping out $850 million in leveraged long positions. The event signals spreading market stress and points to the potential for further short-term volatility as significant leverage is removed from the system.

Major altcoins, including Ether (ETH), Solana (SOL), and Dogecoin (DOGE), plunged by approximately 7% during weekend trading.
The abrupt price drop triggered a massive long squeeze, forcibly liquidating $850 million worth of bullish futures contracts.
This large-scale deleveraging event signals a bearish short-term outlook, with analysts expecting increased volatility and downward price pressure.

Long Squeeze Wipes Out $850 Million in Weekend Trading

The cryptocurrency futures market experienced a dramatic deleveraging event on Saturday, January 31, as a sharp price drop triggered the liquidation of $850 million in bullish long positions. Traders who had used leverage to bet on rising prices were forcibly closed out as the market turned against them. This sudden purge of leverage removes a significant amount of buying support from the market, signaling a bearish shift in sentiment and increasing the likelihood of further price declines in the immediate term.

Ether and Solana Lead 7% Altcoin Plunge

The catalyst for the mass liquidation was a broad sell-off across major digital assets, with Ether (ETH), Solana (SOL), XRP, and Dogecoin (DOGE) leading losses. These prominent cryptocurrencies fell approximately 7%, a move that highlights how market stress is spreading beyond bitcoin. The synchronized downturn indicates a risk-off sentiment among traders, who are now reducing their exposure to higher-beta assets. The market action serves as a stark warning against over-leveraged positions, particularly during volatile weekend trading sessions where liquidity is often thinner.