Crypto markets were hit by a sudden and painful wave of liquidations on Jan. 20, as leveraged traders saw more than $1.08 billion vanish in just 24 hours. Over 182,000 positions were force-closed across major exchanges, marking one of the harshest wipeouts in recent weeks. Almost all of the damage came from long positions, showing just how crowded bullish bets had become before the downturn.
According to data from CoinGlass, 182,729 traders were liquidated during the 24-hour period ending Jan. 20. Of the $1.08 billion in total liquidations, roughly the same amount came from longs, while shorts accounted for only about $79.67 million. The imbalance highlights how heavily traders were leaning toward higher prices before the sudden sell-off reversed the trend.
Bitcoin and Ethereum took the largest hits. Bitcoin longs alone lost around $427.06 million, while Ethereum followed closely with $374.47 million in liquidations. Several major derivatives platforms reported heavy flows as cascading margin calls swept through the market. Hyperliquid recorded $132.39 million in long liquidations, Bybit saw $91.35 million, and Binance logged $64.08 million within just a four-hour window. The biggest single loss occurred on Bitget, where one BTCUSDT_UMCBL position worth $13.52 million was wiped out.
Liquidations happen when exchanges automatically close leveraged positions after traders no longer have enough margin to cover their losses. In fast-moving markets, these forced sales can push prices lower, triggering even more liquidations in a chain reaction. That feedback loop appeared to dominate trading conditions during the downturn, as each wave of selling added pressure to already falling prices.
Even well-known traders were not immune. Machi Big Brother, a prominent investor, reportedly suffered five liquidations in a single day, losing about $24.18 million. His remaining holdings of roughly 2,200 ETH — valued near $6.67 million — remain vulnerable if Ethereum falls further toward the $2,991 range, according to the report.
Technical signals also point to broad market stress. Many altcoins are now trading with a daily Relative Strength Index below 50, a level often associated with ongoing selling pressure. Analysts note that the ratio of 24-hour liquidations to open interest remains elevated, suggesting that a large share of traders have already been forced out and that leverage remains a key driver of volatility.
Price action reflects the strain. By early Jan. 21, Bitcoin was hovering around $89,300 to $89,470, down roughly 2% to 3% over the previous day after briefly dipping near $88,249. Ethereum traded close to $2,960, posting losses of around 4% to 5% after sliding from levels above $3,180. Large-cap and mid-cap altcoins showed even steeper declines, reinforcing the risk-off mood across the market.
For now, the liquidation wave serves as a reminder of how quickly leverage can turn against traders. With momentum weakened and technical indicators flashing caution, many market participants are bracing for continued volatility in the days ahead.
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