A strong liquidation wave has led to over $400 million USD in long positions, with BTC and ETH under significant pressure

DeFiDoctor · 2026-01-20T15:07:57+00:00

The cryptocurrency derivatives market recently experienced a major liquidation, with $416 million wiped out in 24 hours, primarily affecting bullish investors. Long positions faced liquidation of $346 million, while shorts only amounted to $69.63 million. Bitcoin and Ethereum were the top assets affected, highlighting the risks of high leverage and the need for effective risk management in volatile markets.

DeFiDoctor

2026-01-20 15:07:57

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The cryptocurrency derivatives market just experienced a massive liquidation event with a total of $416 million wiped out within 24 hours, with bullish investors expecting price increases suffering the most severe attack.

Overall picture: Liquidation pressure mainly falls on longs

Market data shows a rather harsh situation for bullish traders. In the past 24 hours, long positions liquidated reached $346 million — a significant figure reflecting strong selling pressure. In comparison, short positions were only liquidated at $69.63 million, roughly one-fifth of the longs.

This unbalanced ratio reveals an important truth: most of those liquidated were traders betting on price increases. They used leverage to amplify profits, but when the market turned, the effects were equally devastating.

BTC leads the “victims” list, ETH close behind

Bitcoin, as the king of cryptocurrencies, was not spared from this liquidation. BTC liquidations in the past 24 hours reached $149 million, the highest among assets. Ether (ETH) ranked second with $84.2097 million wiped out.

These two coins account for a large portion of the total liquidation activity, reflecting the reality that most futures traders still focus on major trading pairs. When volatility occurs, BTC and ETH are always the focal points of the largest losses.

The significance of the $416 million figure

The total liquidation amount of $416 million in a single day indicates that current volatility is not insignificant. While not a historical record, it is a clear signal that the market is in a turbulence phase, where poor decisions can lead to heavy financial losses.

These figures also serve as a reminder to traders that risk management — especially controlling leverage — is not an option but a prerequisite for survival in the derivatives market.

BTC1,33%

ETH1,17%

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