A brutal wave of $1.16 billion in liquidations rocked the crypto world, with short squeezed leveraged longs being caught by two factors: rising Middle East tensions as well as higher-than-expected U.S. Inflation data.
Bitcoin was the first to fall, falling as low as $103,556 – its lowest one-day result in June – while Ethereum, Solana and other majors were lagging behind due to a wave of forced selling.
Exchange Breakdown: Where Was the Worst Pain?
Binance, which has liquidated $458 millions worth of assets — more than 91% all longs — was the worst hit. With $375 millions in liquidations and close to 94% longs, Bybit was not far behind. Gate and OKX each lost more than $125 million. HTX Coinex BitMEX Bitfinex Bitfinex Bitfinex Bitfinex Bitfinex Bitfinex Bitfinex Bitfinex Bitfinex Bitfinex BitfineX Bitfinex Bitfinex Bitfinex Bitfinex Bitfinex Bitfinex Bitfinex Bitfinex Bitfinex BitMEX Bitfinex Bitfinex Bitfinex Bitfinex Bitfinex Bitfinex Bitfinex Bitfinex BitfineX
Many of these losses were from investors who bet on an ongoing rally, only to find themselves surprised by the unexpected geopolitical storm and macroeconomic turmoil.
Bitcoin alone lost $446,000,000 in liquidations, while Ethereum only lost $303,000,000. Solana Dogecoin and XRP have all seen tens or millions of forced sales, illustrating the severity of the problem across the board.
Why leveraged longs are still high — and vulnerable
The leverage appetite hasn’t abated despite repeated warnings. BTC and ETH have remained at positive funding rates, meaning traders are still speculating strongly on the high side – even though volatility has increased. The continued optimism created the backdrop for the traditional cascade of liquidation: as prices dropped, stop-losses, margin calls, and domino effects triggered, driving the sale and closing out positions at every major support.
Markets are shaped by liquidation cascades
A little shake can send the markets into chaos, with so many traders concentrated on the same side. Numbers show that $20 million of liquidations were made within one hour following the news. However, as the selling spiraled out-of-control, almost $1 billion in 12 hours was lost.
The crypto-corrections are brutal because of this feedback mechanism, whereby all sales induce further purchases. Heatmaps have become an essential tool in risk management.
Bulls may lose up to $8B if BTC falls below $92k. “Watch the heatmap.”
— @CoinGlass, June 13, 2025
The heatmaps do not just show the areas of pain, but also where they are likely to occur next. Recent data shows that if BTC drops to $92,500 then over $8.4 Billion of long positions will be liquidated. This would be an important “pain” point for bulls. Short-squeeze could be unleashed by a breakout towards $121,900. This would result in a squeeze of over $14 billion.
The Traders’ Guide to Hedging Before the FOMC
The volatility in the crypto market has not abated since June 18th, when FOMC of the Federal Reserve met. FOMC days have historically been marked by massive spikes in volatility, as traders react to rate announcements and future guidance. Individuals are now buying put options, reducing their exposure or contracting stop losses to protect themselves from further declines. The demand for protection against further downside is increasing among institutional desks. Traders target deep out-of the-money put options as an insurance policy to avoid another liquidation.
Risk management is more important than ever because of the macro-environment, which includes rising inflation, tensions geopolitical, and uncertainty about Fed policy. The funding rates, the heat maps, the important support levels and any changes in sentiment as the Fed’s announcement nears are all things traders should be watching.
The Bottom Line
This $1.16-billion liquidation is an example of the risks associated with a market that relies heavily on sentiment and leverage. Only those who manage their risk and keep an eye on the heatmaps can survive the next phase, as war news and inflation readings clash with derivatives bets. Expect more fireworks with the FOMC in the mix. And remember that volatility is the only certainty when it comes to crypto.
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