Cryptocurrency Market Faces Intense Chain Liquidations

In recent developments within the cryptocurrency market, accelerated sell-offs have led to consecutive long position liquidations in Bitcoin , Ethereum , XRP, Solana , and Dogecoin . According to CoinGlass data, the total liquidation amount has reached approximately 700 million USD. Among the cryptocurrencies, XPL coin stood out due to the losses it caused. These liquidations were triggered by the accumulation of high leverage and increased volatility amid macroeconomic uncertainties, shifting global investor sentiment into a cautious zone.

Medium-High Intensity Shock in Cryptocurrencies

In major exchanges with high trading volumes, consecutive stop-outs in futures products started with Bitcoin and Ethereum, creating a broad liquidation chain that spread to XRP, Solana, and Dogecoin. CoinGlass data indicates that intraday total liquidation amounts were about 700 million USD. The significant volatility in XPL coin also led it to be included on the list of affected cryptocurrencies. Compared to billion-dollar-scale mass liquidations seen on different days since the end of September, these figures correspond to a medium-high intensity shock.

On the price front, Bitcoin, the largest cryptocurrency, retreated from its recent record threshold of around $126,200 to $121,600. Prolonged public spending deadlocks and liquidity searches in the US have sensitized investor decisions. Declines in Ethereum and major altcoins created cross-pressures between spot and futures markets, and increasing volatility in a short time led to the liquidation of investors with poor risk management.

Dive in to Discover the Triggers of the Dip

Market experts have frequently noted a rise in leverage usage in recent weeks, warning that it could cause problems. Indeed, the rise causing pressure on the short side turned into a downfall with an increase on the long side.

Moreover, amid increasing uncertainties surrounding a possible government shutdown in the US, pricing became fragile around record thresholds. Even a small wave of sales proved sufficient to trigger a chain liquidation. As interest shifted to traditional safe havens, gold renewed records, while volatility in cryptocurrencies increased.

XPL specifically experienced severe fluctuations during the week, sparking discussions about “inside sales” within the community. While the project side denied these allegations, it emphasized that coins allocated to the team were locked. These discussions once again highlighted how fragile supply-demand balance can be during new listings and how quickly prices can deteriorate during general sell-off days.

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