Ethereum Updates: Automated Bear Market: $2 Billion in Crypto Liquidations Reveal the Dangers of Leverage

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Ethereum Updates: Automated Bear Market: $2 Billion in Crypto Liquidations Reveal the Dangers of Leverage

Bitget-RWA2025/11/22 11:50

By:Bitget-RWA

- Cryptocurrency markets faced $2B in 24-hour liquidations, with Ethereum and Bitcoin suffering largest losses as leveraged longs dominated exits. - Macroeconomic pressures including surging Japanese yields and algorithmic trading triggered cascading sell-offs, pushing ETH below $2,900 for first time in months. - High-profile traders like "Anti-CZ Whale" and Machi lost millions as leveraged positions collapsed, exposing systemic risks in crypto's interconnected markets. - Market turmoil highlighted crypto-

The crypto market faced a turbulent 24 hours, with almost $2 billion in trader positions wiped out, and

Ethereum

(ETH) among the hardest hit.

Bitcoin

(BTC) was responsible for close to half of all liquidations, while

ETH longs saw more than $403 million

forcibly closed. The sharp decline, triggered by a wave of leveraged positions being unwound, pushed Ethereum below $2,900 for the first time in several months

based on Coinglass figures

Ethereum Updates: Automated Bear Market: $2 Billion in Crypto Liquidations Reveal the Dangers of Leverage image 0

The liquidation surge hit leveraged long positions the hardest, wiping out over 391,000 traders as the total crypto market cap slipped below $3 trillion.

Longs made up $1.78 billion

of the total liquidations, while shorts accounted for just $129 million. Among the most significant losses was the "Anti-CZ Whale,"

whose ETH and XRP long positions were liquidated

in one day, erasing gains built up over the past 10 days. Another prominent trader, Machi, saw his account drop to $15,538 after being liquidated, with total losses surpassing $20 million

according to reports

Wider macroeconomic factors intensified the ETH downturn.

Japanese 10-year bond yields surged

, spiking after aggressive monetary easing and sparking a global liquidity squeeze that weighed on crypto prices.

Experts observed that dynamic asset tokens

were being unwound, with Bitcoin’s price drop accelerating selling pressure. Additionally,

rumors of a major proprietary trading firm

or market maker nearing collapse—reminiscent of the FTX crisis in 2022—fueled further anxiety in the market.

The market crash also played out alongside algorithm-driven selling.

The S&P 500 shed $1.5 trillion

in value in just 100 minutes earlier this week, with Goldman Sachs attributing the move to automated trading systems reacting to key technical breakdowns. The Kobeissi Letter described this as a "mechanical bear market," where forced selling by leveraged traders as prices fall

pushes asset values down even further

Ethereum’s price movement highlighted the extent of the sell-off.

On Binance, ETH dropped to $2,851.83

, marking a 5.28% decline in a single day. The largest individual liquidation took place on Hyperliquid,

where a BTC-USD position worth $36.78 million

was closed out. While Bitcoin and Ethereum led the liquidation wave, the broader market crash underscored the deep ties between crypto and traditional finance, as volatility spilled over into institutional asset tokenization projects

according to data

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.

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