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Leverage Washout: $520M Liquidated, BTC & ETH Drop

2026/07/17 16:56Browse 0

$520 Million in Leverage Positions Liquidated in 24 Hours

A massive deleveraging event swept through the crypto market over the past 24 hours, with total liquidations reaching $520.07 million. The breakdown shows longs accounted for $277.31 million (53.3%) and shorts for $242.76 million, indicating that bullish bets collapsed first during the downturn.

Binance and HyperLiquid Dominated Forced Closings

Concentration was stark at specific exchanges. In the last four hours alone, $83.72 million in liquidations were recorded, with Binance at $35.17 million (42.01%) – 92.93% of which were longs. HyperLiquid saw $22.38 million (26.74%) liquidated, with an extreme 99.47% long bias. This suggests leveraged long positions were heavily concentrated on a few major platforms.

Bitcoin and Ethereum Lead Price Declines

Bitcoin fell 2.86% to $62,849, while Ethereum dropped 4.70% to $1,829. Major altcoins followed: Ripple -2.54%, BNB -2.27%, Solana -3.62%, Dogecoin -3.13%, and HyperLiquid plunged 11.45%. Bitcoin and Ethereum alone accounted for $148.46 million and $92.39 million in liquidations, respectively, signaling a broad risk-off move rather than asset-specific issues.

Contrasting ETF Flows and Regulatory Hope

Despite the selloff, spot Bitcoin ETFs saw net inflows of $79.15 million on July 16, led by BlackRock's IBIT at $33.44 million. In contrast, Ethereum spot ETFs experienced net outflows of $28.04 million, highlighting diverging institutional preferences. Meanwhile, expectations for the U.S. CLARITY crypto market structure bill rose to 80% on prediction markets, with a possible Senate vote next week, offering mid-term support for market sentiment.

Macro Headwinds Weigh on Risk Assets

The liquidation occurred alongside hawkish Fed comments, a slide in U.S. stock indexes, and weakness in Coinbase and Robinhood shares. Total crypto market cap stood at $2.1658 trillion with 24-hour volume of $68.5 billion. Derivatives volume dipped 0.23% to $717 billion, suggesting aggressive leverage entry cooled post-washout. Defi volume rose 3.85% to $8.7 billion, and stablecoin volume increased 3.29% to $70.4 billion, indicating defensive capital rotation rather than exit.

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