The crypto market continued its decline, with Bitcoin briefly falling to around $60,461, a four-month low. The total market liquidation volume exceeded $1 billion in the past 24 hours. Meanwhile, potential liquidation positions on Ethereum in DeFi lending protocols also increased significantly, raising concerns about whether the chain of deleveraging will continue to expand.
Bitcoin breaks below key range
Over the past four days, Bitcoin has fallen by approximately 18%, briefly dipping to around $60,500. The report indicates that accelerated selling pressure forced many leveraged long positions to be liquidated, further amplifying short-term volatility.
The article mentions that a significant amount of Bitcoin has recently been transferred to exchanges and sold, which is seen as one of the direct pressures contributing to the current price weakness. Against the backdrop of declining risk appetite, investors are also simultaneously reducing their exposure to highly volatile assets.
- Bitcoin once fell to $60,461.
- The 24-hour liquidation volume exceeded $1 billion.
- The cumulative decline over the past four days is approximately 18%.
Ethereum faces $547 million in liquidation risk.
Regarding Ethereum, over 343,000 ETH face potential liquidation, amounting to approximately $547 million. These risks are primarily concentrated in DeFi lending protocols, and the vulnerability of related positions is increasing as ETH continues to approach key support levels.
From a price range perspective, the most concentrated risk lies between $1,360 and $1,570. Specifically, approximately 46,700 ETH could trigger liquidation around $1,565, while another approximately 58,000 ETH have a liquidation price close to $1,555.
Larger clusters of risk have emerged around $1,426 and $1,362, with a combined exposure exceeding $379 million. If prices continue to decline, these mortgage positions could be liquidated en masse, potentially transmitting new selling pressure to the spot market.
Chain liquidation may further amplify volatility.
The reason this type of liquidation risk is of concern is that forced liquidation often creates additional selling pressure during a downtrend. If Bitcoin and Ethereum continue to fall below their current range, the market may experience a new round of deleveraging, and short-term volatility may further amplify.
The market's focus has shifted from a simple price decline to whether liquidations will continue to spread. If major assets fail to stabilize within their current range, the pressure from forced liquidations on trading platforms and on-chain lending protocols may remain high.
