$1.35B crypto liquidations reset BTC leverage

TLDR

Around $1.35 billion of leveraged crypto positions were liquidated in 24 hours, flushing out crowded Bitcoin longs and partially resetting derivatives leverage.

1. Most of the $1.351 billion liquidations were forced closures of long BTC and altcoin positions on major derivatives exchanges after prices slipped.
2. BTC-focused leverage was sharply unwound, but overall open interest remains high, leaving the market less crowded yet still sensitive to new leverage.
3. The next phase depends on whether fresh leverage quickly rebuilds or spot demand strengthens; funding rates, BTC ranges, and macro tensions are key signals.

Deep Dive

1. What Actually Happened

Reports show around 1.351 billion in liquidations over the 24 hours to 13 July 2026, mostly long positions that breached margin as BTC and ETH pulled back.

Of that total, about 1.073 billion were long liquidations and 278.7 million shorts, showing a crowded bullish trade being forced out rather than an equal two?sided shakeout.

BTC accounted for the largest share of liquidations, with hundreds of millions in long positions wiped, and major alts like XRP, SOL, ADA, DOGE, BNB and others also seeing tens of millions in forced closures.

Liquidations here mean exchanges automatically closing leveraged futures or perpetual positions when collateral falls below requirements, which can accelerate price moves and trigger more liquidations.

2. How BTC Leverage Was Reset

The liquidation cluster hit BTC perps hardest, clearing out aggressive long leverage that had built up in prior sessions, similar in spirit to the earlier 420 million leverage reset wave.

Despite the purge, total derivatives open interest is still around 400.1 B, up about 5 percent over 24 hours, so leverage has been reduced in crowded pockets rather than eliminated across the board.

BTC dominance is near 58.17 percent and the Fear & Greed index sits in the high?20s (Fear), signaling a cautious, BTC?centric stance and less willingness to lever up aggressively on altcoins.

3. What To Watch Next

1. Funding rates and open interest: sustained low or neutral funding with stable open interest suggests healthier positioning, while a fast rebound in positive funding would mean crowded longs returning.
2. BTC price ranges: how price behaves around recent support and resistance bands will show whether spot buyers are stepping in or whether leverage continues to dominate short?term moves.
3. Macro backdrop: geopolitical tensions around Iran and ongoing rate uncertainty keep risk assets fragile; further shocks could spark new liquidations even from a less crowded starting point.

Conclusion

The 1.35 billion dollar liquidation flush was a classic derivatives?driven reset in Bitcoin and major alts, clearing out crowded longs but leaving a still?leveraged market. Short?term direction now hinges on whether traders rebuild leverage aggressively or allow spot demand and macro conditions to stabilize the setup before the next big move.