CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and can afford the risks. Trading CFDs is high risk and is not suitable for everyone. Refer to our PDS and Target Market Determination. AFSL 513393
Open platformOpen platform

Bitcoin, ether and XRP selloff wipes out $1.5 billion in leveraged crypto bets

By CoinDesk

Crypto traders betting on higher prices had about $1.29 billion in positions forcibly closed over the past 24 hours, as the selloff following Binance’s security breach pushed bitcoin, ether and smaller tokens lower.

Total liquidations reached $1.53 billion by Friday morning in Asia, according to CoinGlass. Long positions, bets that prices would rise, accounted for 83.8% of the total.

Most of the losses came in the latest 12 hours, which accounted for roughly $1.37 billion in liquidations, including $1.23 billion of longs.

The forced closures followed Thursday’s Binance breach, which the exchange estimates affected about $6.3 billion in assets. Binance has pledged to cover losses and suspended deposits and withdrawals while conducting security checks.

Bitcoin fell as low as about $76,460 before recovering toward $78,500. Ether traded around $2,240 after dipping below $2,200, while SOL, XRP and dogecoin were also lower.

Leveraged traders put up a fraction of a position’s value as collateral. When prices move far enough against them, the exchange closes the trade automatically to prevent further losses. Closing longs typically generates sell orders, adding pressure while prices are already falling.

Bitcoin positions accounted for about $499 million in liquidations and ether another $358 million, together making up more than half the total. Solana followed at $82.6 million, XRP at $38.1 million and dogecoin at $18.6 million.

Of that, binance recorded $754.6 million in forced closures, or 49.2% of the market-wide total. About $670.6 million of that came from longs. Hyperliquid followed with $251.4 million and Bybit with $186.5 million.

The largest individual liquidation tracked by CoinGlass was an $11 million bitcoin long on Binance.

Meanwhile, the rebound was beginning to hurt traders betting on further declines too. Shorts accounted for $57.3 million of the $85 million liquidated in the latest four hours. In the latest hour, they made up $20.6 million of $21.6 million, about 95%.

Closing a short requires buying back the position, so traders caught betting against a recovery can help push prices higher as they exit.

Read More: $6 billion Binance hack sends bitcoin, ether tumbling; Standard Chartered expects more pain

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.