Bitget App
Trade smarter
Bitcoin News Update: Hyperliquid Faces $21 Million Liquidation, Highlighting Dangers of Leverage in Unstable Crypto Markets

Bitcoin News Update: Hyperliquid Faces $21 Million Liquidation, Highlighting Dangers of Leverage in Unstable Crypto Markets

Bitget-RWA2025/10/30 16:18
By:Bitget-RWA

- Crypto markets saw $1.134B in 24-hour liquidations, led by BTC-USD position closures as leverage risks intensified. - Hyperliquid's $21.43M BTC liquidation highlighted platform's role in volatile trading, outpacing Bybit and Binance. - Fed Chair Powell's caution against rate cuts and Trump's fentanyl tariff deal triggered renewed crypto selling pressure. - Bitcoin's "death cross" pattern and $470M ETF outflows signal bearish momentum amid leveraged position fragility.

The cryptocurrency market saw significant turbulence over the past day, with global liquidations reaching $1.134 billion as

(BTC-USD) trades led to the majority of closed positions. Data from Coinglass shows that long positions made up $974 million of the total liquidations, while shorts accounted for $159 million, highlighting increased risk-taking among leveraged traders, according to a . The largest single liquidation was recorded on Hyperliquid, a decentralized exchange, where a BTC-USD position worth $21.43 million was closed, emphasizing the platform’s expanding influence in high-volume futures trading during volatile periods.

This wave of selloffs came after Federal Reserve Chair Jerome Powell issued a warning against making aggressive bets on further interest rate cuts, dampening investor sentiment. Powell’s statement followed the Fed’s recent 25-basis-point cut to a range of 3.75%-4%, but his caution against "a series of further cuts" sparked renewed selling in the crypto sector, as noted in a

. Market swings intensified after U.S. President Donald Trump met with Chinese President Xi Jinping, announcing a trade agreement to reduce fentanyl-related tariffs on Chinese imports. Although initially described as "amazing," the report indicated this news accelerated short-term declines before the market steadied.

Bitcoin News Update: Hyperliquid Faces $21 Million Liquidation, Highlighting Dangers of Leverage in Unstable Crypto Markets image 0

The $21.43 million liquidation on Hyperliquid highlighted the vulnerability of leveraged BTC-USD trades, which continues to be the most traded pair. Hyperliquid led with $282 million in total liquidations during this period, surpassing Bybit ($223 million) and Binance ($144 million), according to the report. At the same time, Bitcoin’s price volatility triggered widespread deleveraging, with open interest in futures dropping from a monthly peak of $94 billion to $73 billion. This was accompanied by $470 million in outflows from spot Bitcoin ETFs, primarily from Fidelity’s FBTC and

Invest’s ARKB, as investors pulled back in response to technical challenges, as reported by a .

Technical signals also pointed to continued bearish momentum. Bitcoin’s price, hovering near $110,000, was close to forming a "death cross"—a pattern where the 50-day and 200-day moving averages intersect, often seen as a sign of further declines. On Hyperliquid, on-chain data showed $22 million in long positions at risk if the HYPE token, the platform’s native asset, drops to $46, according to an

. Despite this, open interest in HYPE futures rose by 9.11% in the last 24 hours, indicating persistent retail interest despite the uncertainty.

The recent spike in liquidations highlights the dangers of leveraged trading in crypto, where sharp price movements can trigger a chain reaction of position closures. As investors contend with both macroeconomic challenges and technical breakdowns, platforms like Hyperliquid are becoming central to market volatility, underscoring the importance of careful risk management.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

You may also like

Ethereum Updates Today: Major Gaming Companies Surpass Crypto as Optimism Moves Toward Regulated Digital Marketplaces

- Ethereum's 4.44% two-day drop contrasts with RSI's 19.7% YoY revenue surge, highlighting shifting investor priorities toward regulated digital entertainment. - RSI's Q3 results beat estimates by 24.5% on strong U.S. casino growth, with 46% YoY user growth and record first-time deposits. - RSI raised 2025 guidance to $1.11B revenue and $150M EBITDA, driven by cost-cutting and Alberta market expansion, outperforming gaming sector peers. - Analysts note RSI's disciplined growth model is reshaping "bullish"

Bitget-RWA2025/10/30 20:36
Ethereum Updates Today: Major Gaming Companies Surpass Crypto as Optimism Moves Toward Regulated Digital Marketplaces

Ethereum News Today: "Major Investors Withdraw from Ethereum ETFs While Bitcoin Sees $931M Inflow Boom"

- Ethereum fell below $3,720 as whale activity and exchange outflows signaled shifting crypto sentiment, contrasting Bitcoin's $931M net inflows driven by U.S. inflation optimism. - Ethereum ETFs faced $555M in two-week redemptions, while Bitcoin ETFs gained $446M, highlighting institutional capital's preference for Bitcoin amid macroeconomic uncertainty. - Softer U.S. inflation data and Fed rate cut expectations fueled risk appetite, yet Ethereum struggled to recover as investors awaited key economic data

Bitget-RWA2025/10/30 20:36
Ethereum News Today: "Major Investors Withdraw from Ethereum ETFs While Bitcoin Sees $931M Inflow Boom"

Bitcoin Updates Today: A New Wave of Whales Brings Volatility to the Bitcoin Market

- Bitcoin struggles to hold above $113,000 STH cost basis, risking a drop to $88,000 as short-term holders face losses and long-term holders offload 104,000 BTC this month. - New whales (45% of Whale Realized Cap) now hold Bitcoin at $112,788 cost basis, exposed to losses as price dips below their entry point for the first time in over a year. - Market fragility grows with STH-NUPL at -0.05 and LTH distribution, while Fed policy uncertainty and inexperienced whale behavior threaten to amplify volatility. -

Bitget-RWA2025/10/30 20:36
Bitcoin Updates Today: A New Wave of Whales Brings Volatility to the Bitcoin Market