Crypto Sell-Off Triggers $627M in Liquidations, Over 217K Traders Affected
The cryptocurrency market experienced a sharp downturn on Friday, resulting in mass liquidations totaling more than $627 million in a single day.
According to data from CoinGlass, approximately 217,501 traders were affected by the turbulence, with the majority of losses stemming from long positions.
The largest single liquidation occurred on OKX, involving a BTC-USDT trade worth $12.74 million. Of the total liquidated positions, about $557 million were longs, while shorts accounted for only $72 million, highlighting that most traders had been betting on rising prices before the sudden drop.
This pullback follows a strong rally that had pushed Bitcoin to a record high of $111,900. However, the price has since declined to around $105,500, marking a 1.6% drop. Altcoins fared even worse, with tokens like Raydium, Ethena, and Arbitrum each shedding over 12%. Notably, Fartcoin plunged 13.8% during the sell-off.
Analysts attribute the crash to a combination of technical, seasonal, and macroeconomic factors. Large traders often lock in profits after major events or price peaks, such as the recent Bitcoin 2025 Conference, triggering widespread selling.
Historically, June tends to be one of the weaker months for crypto markets, with Bitcoin averaging a monthly return of -0.35%, as summer slowdowns in trading activity take hold.
Adding to the pressure, mixed signals from U.S. trade courts regarding Trump-era tariffs have reignited investor uncertainty. At the same time, the Federal Reserve appears poised to maintain high interest rates, pending further inflation data.
Reports from Binance suggest that Beijing may soon implement a full ban on individual crypto holdings, sparking panic selling among Asian traders.
The confluence of these factors has increased market volatility and erased recent gains. As previously noted, Bitcoin ETFs have also seen substantial outflows, with $358 million withdrawn in recent sessions, further weighing on investor sentiment.
