On the 12th, the digital asset derivatives market saw a surge in short position liquidations, totaling 143.75 million USD in 24 hours. Despite price action remaining largely steady, leverage positions were unwound quickly, shifting market focus from price direction to changes in the derivatives position structure. Short liquidations outweighed longs by 74.90 million USD to 68.85 million USD, suggesting a chain reaction of positions being exited in anticipation of a move rather than a clear trend reversal.
Ethereum and Bitcoin dominated the liquidation activity. Ethereum liquidations reached 24.66 million USD, the largest share, while Bitcoin liquidations totaled 21.66 million USD. In Bitcoin terms, short liquidations (15.39 million USD) surpassed longs (6.26 million USD) by a wide margin, with Ethereum showing a similar pattern (shorts 16.14 million USD).
Among altcoins, Solana saw liquidations of 9.84 million USD, XRP about 7.86 million USD, and other small caps such as Dogecoin and ZEC also experienced rapid short-covering following brief spikes. The day’s activity hints more at position restructuring than a decisive directional shift, as overall leverage declined and the market displayed a box-range dynamics rather than a strong up or down trend.
The single largest liquidation occurred on an ETHUSDT position on Binance, totaling 3.02 million USD, underscoring Ethereum-centric liquidity concentration in digital asset derivatives. While short-position liquidations eased near-term downward pressure, they do not conclusively establish a new rising trend. Analysts expect the near-term market signal to be driven by the distribution of liquidations and the ongoing reformation of positions rather than sustained price moves.
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