Crypto Market Crash Triggers Over $2.5B in Liquidations as Bitcoin, Ethereum & XRP Plunge

The crypto market plunged sharply over the weekend, triggering a wave of forced liquidations that wiped out more than $2.5 billion in leveraged positions as prices sank across major assets including Bitcoin (BTC), Ethereum (ETH)and XRP. The sell-off underscored how quickly speculative positions can unwind in a risk-off environment.

Major Coins Slide Sharply

Bitcoin led the downturn, dipping toward $77,000, its lowest levels in roughly nine months and marking a steep correction from its late-2025 peak above $126,000. Ethereum also slid hard — down more than 10 % in a day and roughly 20 % on the week, while XRP posted significant losses as traders de-risked.

The market decline wasn’t isolated to these three — most major altcoins felt the pressure as traders rushed to exit leveraged positions, deepening the sell-off across crypto markets.

Liquidations Hit Leveraged Traders Hard

The crash triggered approximately $2.53 billion in liquidations across global crypto derivatives markets. The vast majority — about $2.41 billion — came from long positions, where traders bet on rising prices.

• Ethereum traders were the most impacted, suffering more than $1.1 billion in liquidations.

• Bitcoin accounts saw roughly $765 million wiped out.

Liquidations occur when leveraged positions fall below required collateral levels, automatically closing out trades and often amplifying price moves as stop-loss orders cascade.

Macro Factors Weigh on Risk Assets

Analysts say several macro-economic drivers may have contributed to the sell-off:

• Continued risk-off sentiment amid uncertain economic data and geopolitical concerns.

• Broader financial market weakness that pressured risk assets like equities and crypto.

• Unsettled expectations around monetary policy and inflation dynamics.

The collapse wasn’t confined to BTC, ETH and XRP — tokens like Solana, Dogecoin and other prominent alts also posted sharp drops, reflecting wide-ranging risk aversion.

What Traders Are Watching Now

With key technical support levels broken, analysts and traders are watching for:

• Whether Bitcoin stabilizes near current levels or tests lower supports.

• How broader markets — equities and macro indicators — influence crypto sentiment.

• The pace of leveraged trading shrinking or growing in response to volatility.