Leverage flush triggers $326M crypto liquidations

TLDR

Around $326 million of mostly long crypto derivatives were liquidated in one wave, flushing overheated leverage as Bitcoin traded just below 60,000 USD.

1. A $326.71 million liquidation event on 29 June (UTC) wiped out 87.5% long positions across major venues, with BTC and ETH dipping modestly.
2. Despite the flush, total derivatives open interest remains high while stablecoin dry powder and ETF flows show weaker demand, keeping sentiment fragile.
3. The next signals are whether open interest and funding cool further or rebuild, and how Bitcoin behaves around the 60,000 to 55,000 USD zone.

Deep Dive

1. Size And Shape Of The Flush

TokenPost reports a $326.71 million crypto liquidation wave on 29 June, with 87.5% of liquidations coming from long positions as Bitcoin (BTC) slid about 1.2% to 59,366 USD and Ethereum (ETH) fell 0.86% to 1,563 USD liquidation wave.

Liquidations were concentrated on large venues: Binance saw about 107.32 million USD, Gate about 145.88 million USD, and Hyperliquid reported 99.99% long liquidations, highlighting how quickly high-risk long exposure was forced out. Major altcoins moved lower in sympathy, but without a dramatic crash.

Derivatives volume hit roughly 439.5 billion USD, up slightly day on day, suggesting this was a repositioning event rather than a wholesale exit from derivatives markets.

2. Leverage, Liquidity, And Sentiment

Market-wide, total derivatives open interest is still near 396.89 billion USD and even up around 1.9% over 24 hours, so leverage remains substantial despite the flush. BTC-specific liquidations over 24 hours jumped, showing stress but not yet full capitulation.

At the same time, the stablecoin sector contracted by about 9.445 billion USD between early May and 28 June, reducing available dry powder for dip-buying and making markets more vulnerable to selling pressure stablecoin sector contracted.

Bitcoin has also slipped below its 200-week moving average, historically a cycle support, after heavy spot ETF outflows, which raises the risk that this leverage flush is part of a broader de-risking phase rather than a clean bottoming signal 200-week moving average.

3. Key Signals To Watch Next

Three clusters matter now:

1. Derivatives metrics: If open interest and long-biased funding rates keep drifting lower, the market is de-leveraging, which can reduce future liquidation risk but also cap sharp rebounds.
2. Bitcoin price levels: Many analysts are watching the 60,000 USD area as a battleground and warning that a sustained break toward 55,000 USD would confirm a deeper downtrend rather than a simple shakeout.
3. Liquidity and flows: Stablecoin supply, ETF net flows, and spot volumes will show whether fresh capital is stepping in or staying sidelined.

Conclusion

The 326 million USD liquidation event was a classic leverage flush that forced out aggressive longs without triggering a full crash, but it happened in a context of shrinking stablecoin liquidity, heavy ETF outflows, and Bitcoin losing long-term technical support. Until open interest meaningfully normalizes and fresh spot demand reappears, crypto markets are likely to stay in a cautious, volatility-prone regime where leverage events can recur rather than mark a definitive turning point.