Crypto liquidations have surged to $940 million after Bitcoin briefly slipped below $109,000, just days after the market rallied on the back of Fed Chair Jerome Powell’s Jackson Hole remarks.
Data from CoinGlass shows that long positions bore the brunt, accounting for $826.51 million of the $941 million in liquidations. Bitcoin positions were the second-largest contributor, with $277.21 million wiped out—nearly 30% of the total—after BTC dropped under the $110,000 mark.
This sharp reversal comes shortly after Powell’s dovish comments sparked a $594 million market upswing late last week. The optimism, however, proved short-lived as Bitcoin has since lost momentum below $110,000.
On August 22 at Jackson Hole, Federal Reserve Chair Jerome Powell signaled the possibility of upcoming interest rate cuts, noting that elevated uncertainty was complicating policymaking. His remarks fueled a strong rally in the crypto market, with Bitcoin surging to a weekly peak of $116,960—just shy of the $117,000 mark. The momentum, however, was short-lived as BTC quickly tumbled back into the $109,000 range.
What do large-scale crypto liquidations signal for the market?
Crypto liquidations totaling $941 million highlight the market’s heightened volatility and the risks of excessive leverage among traders. Since liquidations occur when sharp price swings force long and short positions to close, such a large-scale wipeout suggests a sharp imbalance in sentiment, with cascading sell-offs deepening the downturn.
The impact is clear in the broader market: the total crypto market cap shed $200 billion—about 2.2%—slipping from $4 trillion to $3.8 trillion as of August 26. Bitcoin has yet to recover, hovering just above $110,000 at $110,250 after its sharp drop.
Ethereum, while also under pressure, is holding steadier. Despite a 4.9% decline, it remains within the $4,400 zone, trading at $4,429.
