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Key Insights:
- Crypto market liquidations surge 77% over the past 24 hours to $1 billion.
- Bitcoin, Ethereum, and XRP saw the highest liquidations, leading to declining prices
- Crypto analyst advises traders to buy the dip as the bull run is still very active.
The crypto market faces one of the latest liquidations in the past few years. Within the past 24 hours, crypto liquidations wiped out over $1 billion from leveraged positions.
Notably, Bitcoin (BTC), Ethereum (ETH), and Ripple-backed XRP recorded the highest losses in the liquidation heatmap.
The Crypto Market Liquidation Outlook
According to CoinGlass data, crypto market liquidations surged 77% over the past 24 hours to more than $ 1 billion. These liquidations came from 210,978 traders, with longs accounting for most of the losses.
In the crypto market, liquidation refers to the forced closing of a trader’s positions. It occurs when a trader’s margin account can no longer fund their open positions.
This may be due to severe losses or a lack of sufficient margin to meet maintenance obligations.
The liquidation heatmap showed Ethereum recording the highest losses, which amounted to $312.96 million. Longs took the heavier hit, with $222.5 million wiped out compared to $90.1 million in shorts.
Bitcoin and XRP also faced heavy losses. Total liquidations for Bitcoin reached $214.07 million, while those of XRP amounted to $56.54 million.
Furthermore, Bybit, Binance, and OKX exchanges saw the brunt of the liquidations, indicating a marketwide sweep of leveraged positions.
The broader digital asset ecosystem is currently feeling the pressure from the latest liquidations. Bitcoin is currently tradin: g around $118,208, down 0.5% on the daily chart.
Also, the ETH price has dropped 1.2% within the same timeframe to $4,616. For XRP, the price has decreased by 4.7% to $3.1.
Top memecoins, including Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE), also decreased by 6.2%, 6.8%, and 8.3%, respectively.
Ethereum Bears Crushed as Short Liquidations Soar
Amid the current market dynamics, a crypto analyst, CryptOpus, pointed out a notable ETH liquidation event.
The analysts noted that Ethereum short liquidations rose to $66 million on August 12. This marks the second-largest short liquidation event so far in 2025.
Short liquidations occur when traders who bet on falling prices are forced to close positions as prices climb. This scenario leads to upward momentum, forming a classic short squeeze.
Following the short squeeze, the ETH price climbed towards $4,620. With liquidations sparking a wave of forced buybacks from overleveraged short positions, ETH persistently pushed against $4,330 resistance.
Crypto market expert Ted forecasted that ETH price could hit an all-time high of $4,750 if it successfully breaks above the resistance.
Another crypto expert, Ali Martinez, predicted that the next ETH price targets at $5,210 and $6,946.
Should Investors Buy the Crypto Market Dip?
Popular market analyst, Michael van de Poppe, has attributed the intense market liquidation to the July Producer Price Index (PPI) data.
According to data from the Bureau of Labor Statistics, July PPI showed inflation for businesses rose 0.9%, well ahead of the forecasted 0.2% increase.
On an annual basis, core producer prices rose 3.3%, the highest level seen since February.
In his post, Van de Poppe reiterated that the altcoin liquidations are primarily from long positions.
He explained that the long positions cascaded, creating the steep price corrections.
Therefore, he advised inventors to continue buying the dip, even if the price overstretches.
Other crypto market participants have highlighted that the current price pullback state is also very suitable for buying.
They cited bullish prices on the weekly and monthly charts. For instance, BTC has remained at 1.3% over the past 7 days. Similarly, ETH has rallied 19.2% within the same time frame.
