Crypto Market Crash Wipes $1.5 Billion in Bitcoin, Ethereum, XRP Liquidations

The crypto market crash erased over $170 billion within a day as hefty outflows occurred on Tuesday. Moreover, it led to more than $1.5 billion in liquidations of leveraged crypto assets. The slump comes in response to rising oil prices and geopolitical tensions stemming from the current U.S.-Iran conflict.

$1.5 Billion Liquidations Dominate Crypto Market Crash

Overall, $1.5 billion of crypto liquidations took place over the last 24 hours. Out of this, it included nearly $1.35 billion on the part of long investors, according to CoinGlass data. In total, it appears that $141.8 million in crypto liquidations occurred over the past 24 hours, with the overwhelming majority of that loss accruing to long investors (nearly $135 million). The sell-off saw the liquidation of more than 224,500 traders, which is roughly the population of a mid-sized city discovering their leverage all at once.

Bitcoin-related liquidations accounted for approximately $805.8 million, making BTC the biggest contributor to the crypto market crash as the price fell to the $66,000 level. Ethereum liquidations climbed to approximately $323.5 million, while XRP liquidations rose to nearly $28.8 million, with longs accounting for over 95% of the positions liquidated. The mass liquidation event worsened the market drop, as exchanges automatically closed leveraged trades that no longer had enough margin to keep the lights on. The selloff drove Bitcoin, Ethereum, XRP, and other cryptocurrencies down further, and the broader crypto market crash pulled down investor sentiment, forcing traders to de-risk and reallocate into safer assets like cash, gold, and oil-linked investments. Major crypto futures trading platforms also saw funding rates flip negative, which hints at continued downward pressure in the short term.

Bitcoin, Ethereum, XRP Prices Crash

Overall, the market has taken a hit, with Bitcoin dropping to around $66,921. The BTC price saw a weekly loss of almost 12% and a daily dip of 6.44%. Further, Ethereum fell around 5.38% to $1,894 for the day. In addition, Ripple's XRP tumbled 6.43% to $1.21. Solana declined 7.54% to $74.92, and Dogecoin fell 7.05% to $0.093. The volatility stems from investors' attention to the U.S.-Iran war. This week, it was reported that Iran is suspending ta