Crypto selloff triggers $1.7B long liquidations

TLDR

A sharp crypto selloff just flushed roughly 1.7 to 1.8 billion dollars of leveraged long positions, mostly in Bitcoin and Ethereum, as leverage reset across derivatives markets.

1. Reports show around 1.8 billion dollars in 24 hour liquidations, with more than 1.5 billion from long positions and Bitcoin and Ethereum taking the largest hit.
2. The flush followed heavy spot Bitcoin ETF outflows, a symbolic corporate BTC sale, Mt. Gox wallet activity, geopolitics, and crowded leverage that turned a dip into a cascade.
3. Open interest has dropped, sentiment is in fear, and the next key signals are whether ETF flows stabilize and whether Bitcoin holds the 65,000 to 60,000 dollar support area.

Deep Dive

1. Scale Of The Liquidation Wave

Multiple analytics-based reports show one of 2026s biggest wipeouts of leveraged longs. Cointelegraph cites about 1.83 billion dollars in total liquidations, with roughly 1.58 billion from long positions and Bitcoin and Ether accounting for about 774 million and 440 million dollars respectively in long liquidations over 24 hours total liquidations.

Yahoo Finance similarly notes nearly 1.8 billion dollars in liquidations, with over 1.5 billion from longs and more than 800 million tied to Bitcoin alone wipeout details. Other outlets place the total in a 1.6 to 1.9 billion dollar band, which is consistent with exchange-by-exchange differences.

On a market level, total crypto market cap fell about 3.8 percent in 24 hours (from 2.31 trillion to 2.22 trillion dollars), while perpetuals open interest dropped around 6 percent, showing that a meaningful chunk of leverage was cleared.

2. Main Drivers Behind The Selloff

Several bearish forces converged. Spot Bitcoin ETFs have seen persistent net outflows, with one analysis putting cumulative redemptions in roughly the 2.8 to 3.5 billion dollar range over a multi week stretch, weakening the demand backbone for BTC and contributing to more than 1.35 billion dollars in long liquidations ETF and liquidation context.

AMBCrypto highlights that about 1.76 billion dollars was liquidated over 24 hours with roughly 810 million in BTC liquidations, alongside significant negative ETF flows and whales moving coins to exchanges at a loss whale and ETF flows.

Geopolitical tension around Iran and Middle East shipping routes also pushed investors toward safe havens, while a small but symbolically important 32 BTC sale by Strategy (formerly MicroStrategy) and renewed Mt. Gox wallet activity further dented sentiment macro and sale backdrop. Once BTC broke key supports around the mid 60,000s, forced long closures amplified downside as exchanges auto-sold collateral.

3. Key Signals To Watch Next

Derivatives data shows some pressure has already been released. Perpetuals open interest is down about 6 percent over 24 hours, and average funding rates have fallen sharply from recent elevated levels, reflecting less aggressive long bias.

Sentiment has flipped to fear. A major sentiment index now sits around 20, labeled Fear, versus Neutral roughly a month ago, while some reports show print readings as low as 11 (Extreme Fear) around the height of the flush fear gauge move. BTC dominance is steady near 58 percent, suggesting this is a broad risk-off move rather than a BTC to altcoin rotation.

Technically and structurally, markets are watching whether Bitcoin can stabilize in the 65,000 zone, with many analyses treating 60,000 dollars as the next major downside area if ETF outflows and forced selling persist.

Conclusion

The latest crypto selloff was a classic leverage flush, triggered by sustained spot ETF outflows, macro stress, and symbolic selling, which combined to unwind overextended long positioning. That has reduced some systemic risk but left sentiment fragile, so the balance between ongoing ETF redemptions and any return of inflows, plus whether Bitcoin holds key support, will shape how quickly the market can transition from forced selling to a healthier consolidation.