Extreme fear has taken hold in the virtual asset market… 1.2 trillion won worth of bets on an increase are liquidated

The virtual asset market has plummeted, causing a large-scale liquidation event. As long positions in the futures market for major assets, including Bitcoin (BTC), were massively settled, investment sentiment rapidly froze.

According to Coin Glass on the 7th, approximately $1.02 billion (about 1.494 trillion won) worth of positions were liquidated in the virtual asset futures market over the past 24 hours. During this period, about 327,879 traders were forcibly liquidated. Among these, long positions amounted to approximately $877.51 million (about 1.286 trillion won), accounting for about 86% of the total liquidations. Most investors who bet on price increases faced losses due to the sudden drop.



The liquidation scale was largest for Bitcoin (BTC) at $344.24 million and Ethereum (ETH) at $296.89 million. XRP and Solana (SOL) derivatives saw liquidations of $43.7 million and $52.94 million, respectively. This was the result of massive leverage bets expecting price surges being settled.

At 2:42 PM that day, according to CoinMarketCap, BTC dropped 7.69% from the previous day to $76,934.82. The altcoin leader ETH plummeted 14.57% to $1,544.56. XRP and SOL expanded their declines to 17.04% and 15.10%, respectively. Doge also crashed 15.59%, falling to the $0.14 range.

Coindesk diagnosed that "traders took positions expecting higher prices with the anticipation of a short-term market recovery, but these expectations collapsed." Such large-scale liquidations are also interpreted as a signal that overheated market sentiment has peaked. Some analysts believe this extreme shift in investor sentiment could be a prelude to a technical rebound.

According to Alternative.me, a cryptocurrency data provider, on the same day, the Crypto Fear and Greed Index dropped 11 points from the previous day to 23 points, transitioning to a state of "extreme fear".

Do Ye-ri Reporter

yeri.do@sedaily.com