Ether liquidations significantly outpaced bitcoin's on a relative basis Thursday, with $356 million in ETH positions wiped out over 24 hours compared to $298 million in BTC liquidations—despite bitcoin's market value being more than five times larger.
Measured by market size, ether sustained roughly six times the damage. Ether liquidations amounted to approximately $1.2 million per $1 billion of market value, while bitcoin saw about $180,000 per $1 billion. Ether fell more than 3% to around $2,490, while bitcoin declined about 1%.
Across the broader crypto market, total liquidations reached $1.19 billion over 24 hours, with more than $1 billion coming from long positions—traders betting on price increases. The largest single liquidation was a nearly $20 million ether position on Hyperliquid, a decentralized leveraged trading exchange.
Other altcoins contributed to the losses: SOL positions accounted for $71 million in liquidations, XRP for $34 million, and NEAR for $25 million, with all remaining tokens combined adding approximately $119 million.
Triggers and Market Conditions
The liquidation cascade followed multiple market pressures. Federal Reserve minutes indicated most officials expected another rate hike before year-end. Reports of Pentagon preparations for renewed combat in Iran also weighed on sentiment. Additionally, ethereum researcher Justin Drake's warning that artificial intelligence could compromise crypto wallet security sooner than expected added to market anxiety.
Bitcoin had traded in a narrow range between $83,000 and $87,000 for much of the week, with traders accumulating leveraged positions. When this range broke Thursday, bitcoin slid from about $83,200 to as low as roughly $80,400.
Short Squeeze Recovery
Bitcoin recovered to approximately $82,200 after President Trump stated the U.S. would not strike Iran before midterm elections. This bounce triggered liquidations among bearish traders, with roughly $25 million in positions wiped out over four hours. Of that total, 78% came from shorts, with nearly $12 million of approximately $13 million liquidated in the most recent hour alone.
Bitcoin now sits about $800 below $83,000, the level where Thursday's selling began.
