Sophia Bennett
Crypto Analyst
The bulls had been building positions for weeks, betting that Bitcoin would push past $82,000 and keep running. On Sunday, that bet blew up, and the damage was severe.
Long crypto futures positions betting on a market rally lost $563 million in forced liquidations over the past 24 hours. Ether and Bitcoin led liquidations as their prices dropped on macroeconomic concerns. This is the largest single‑day wipeout since February 6, when BTC crashed to nearly $60,000 and erased $1.84 billion in bullish positions.
The scale of the move tells you everything about how one‑sided the market had become.
The Numbers That Explain Everything
Ether, the second‑largest token by market value, bore the brunt of the damage, accounting for $244 million of the long liquidations. Bitcoin followed with $160 million. The two tokens, taken together, accounted for the bulk of the market‑wide unwind that crowded out bullish leverage.
Liquidations of shorts, or bearish bets, over the same period came in at just $65 million, which tells you how lopsided the positioning had become.
The single largest liquidation order occurred on Bitget, where an ETH/USDT perpetual contract worth $28.49 million was wiped out in one go.
What Triggered the Cascade
This was not a random sell‑off. The catalyst was clear, and it came from outside the crypto market entirely.
These losses are linked to hotter‑than‑expected US inflation data that spooked global risk assets. Bitcoin dropped 5% to $77,400 in the week ended May 17 and has since extended losses to trade just under $77,000. Ether fell 10% to $2,129.
The liquidation wave hit alongside notable price declines across the crypto market. The drop was not entirely unexpected, analysts had previously flagged the possibility of a risk‑off Monday after President Donald Trump signalled possible US strikes on Iran.
Inflation data pushing rate hike bets higher, combined with fresh geopolitical tension, was the worst possible combination for a market already leaning heavily long.
How Liquidations Work and Why They Snowball
For anyone unfamiliar with how this happens, the mechanics matter.
Exchanges liquidate positions when a trader's bet goes so wrong that their deposited funds can no longer cover the loss. When you trade futures, you can take a bullish or bearish bet by putting down a fraction of the total trade value as a deposit. If the market moves against you, losses grow fast and often become large enough to wipe out the deposit entirely. The exchange then steps in to close the position. That is precisely what happened with longs as Bitcoin and Ether fell, dragging the broader market lower.
Leverage dynamics played a central role in intensifying the decline. When prices failed to extend higher and instead broke below key technical support levels, stop‑loss orders were triggered and liquidations accelerated. The forced unwinding of leveraged longs pushed prices lower than spot selling alone would likely have achieved, creating a self‑reinforcing feedback loop across the market.
ETF Outflows Added to the Pressure
The pain was not limited to derivatives markets. Institutional investors were also pulling back.
Spot Bitcoin ETFs recorded net outflows of $1.039 billion for the week of May 11 to 15, snapping six consecutive weeks of net inflows. Spot Ethereum ETFs posted a separate net outflow of $255 million over the same period, the combined institutional exit reflecting a potential reassessment of near‑term positioning by major market participants.
The sell‑off pushed the Fear and Greed Index to 29, landing squarely in the fear zone after sitting at a neutral 50 just days prior.
What Happens Next
Looking ahead, the trajectory of Bitcoin, Ether, and the broader market will depend on whether macro conditions stabilise and whether confidence among institutional and retail investors can rebuild without renewed liquidation pressure.
The long side is now significantly flushed out. That removes some of the overhang that made the market vulnerable. But until inflation cools or the geopolitical backdrop improves, every recovery attempt faces the same headwinds that just triggered $563 million in losses in a single day.