Over $410M in crypto positions liquidated as bitcoin volatility spikes

More than $410 million in leveraged crypto positions were liquidated across major exchanges in 24 hours, with long traders accounting for 63% of the wipeout, CoinGlass data shows.

The liquidation cascade followed a volatile stretch for bitcoin, which fell from near $74,000 in late May to below $58,000 last week before recovering to $63,824 as of 14:30 UTC, according to CoinGecko. Short positions accounted for $152.41 million of the total, while long liquidations reached $257.72 million. More than 126,000 traders were affected across centralized exchanges, per CoinGlass.

Bitcoin's 10% rally from July 1 lows was fueled by expectations of Federal Reserve rate cuts after a weaker-than-expected U.S. jobs report showed only 57,000 new jobs, according to Bureau of Labor Statistics data. The CME FedWatch Tool now prices in a 72% probability of a quarter-point cut at the September meeting. Spot bitcoin ETF inflows totaled $767 million over the preceding week, with BlackRock's IBIT and Fidelity's FBTC leading the flows, according to data from The Block.

Ethereum traded at $1,757.20, up 0.28% on the day, with traders focused on the $1,750 support level. Analyst Ali Charts flagged an hourly Tom DeMark Sequential buy signal on ETH, saying a hold above $1,750 could trigger a bounce toward $1,800. Ethereum futures open interest stood at $24.53 billion, with the Binance long-short ratio at 1.67, indicating slight bullish positioning among top traders. ETH ETF inflows reached $160.8 million during the same weekly period.

Strategy, the largest publicly traded corporate bitcoin holder, sold 3,588 bitcoin for $216 million on July 6, adding to uncertainty about near-term buying pressure. The company now holds 843,775 bitcoin purchased at an average price of $75,476, according to its latest disclosure. The Fear & Greed Index rose to 28, still in "fear" territory but at its highest reading since late January.

The key level for bitcoin sits at $64,000 resistance, with support at $58,000. A break above $64,000 could open a path toward $68,000, while a loss of $58,000 would test the $55,000 zone, based on recent price action. For ethereum, the weekly chart shows an ascending channel with a longer-term target near $6,044, though near-term support sits at $1,540 and $1,255 if the $1,750 level fails.

This article is for informational purposes only and does not constitute investment advice.