Ether bets were wiped out at six times bitcoin’s rate in crypto’s $1 billion flush
A massive $1.19 billion liquidation event hit the cryptocurrency market, with Ethereum positions suffering significantly more damage than Bitcoin. The market volatility was driven by macroeconomic concerns, including potential interest rate hikes and geopolitical tensions in Iran.
Why it matters
The disproportionate impact on Ethereum highlights the high-risk nature of leveraged trading in crypto markets during periods of macroeconomic uncertainty.
A liquidation happens when a trader borrows to make a bigger bet and losses eat through the collateral they put up, so the exchange closes the position automatically, often selling into an already falling market and pushing prices lower for the next trader in line.
Across the market, $1.19 billion was liquidated over 24 hours, and over $1 billion of it came from longs, or traders betting on higher prices. The largest single wipeout was a nearly $20 million ether position on Hyperliquid, a decentralized exchange for leveraged trading.
Measured against its size, ether took about six times the damage.
Its liquidations work out to roughly $1.2 million for every $1 billion of market value, compared with about $180,000 for bitcoin. Ether fell more than 3% to about $2,490, while bitcoin lost about 1%.
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