The crypto market continued its decline, with Bitcoin falling to around $60,461, reaching a four-month low. Over $1 billion in total liquidations occurred across the market in the past 24 hours. Meanwhile, potential liquidation positions for Ethereum in DeFi lending protocols have also risen significantly, prompting market participants to focus on whether further deleveraging will spread.
Bitcoin has fallen below the key range.
Over the past four days, Bitcoin has accumulated a decline of approximately 18%, briefly dipping to around $60,500. Reports indicate that increased selling pressure triggered widespread forced liquidations of leveraged long positions, further amplifying short-term volatility.
The article notes 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. Amid declining risk appetite, investors are also simultaneously reducing their exposure to high-volatility assets.
- Bitcoin once fell to $60,461.
- Daily clearing volume exceeds $1 billion
- Cumulative decline over the past four days is approximately 18%.
Ethereum faces a $547 million liquidation risk
On Ethereum, over 343,000 ETH, equivalent to approximately $547 million, are at risk of potential liquidation. 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 highest concentration of risk lies between $1,360 and $1,570. Approximately 46,700 ETH may be liquidated near $1,565, while another 58,000 ETH have liquidation prices close to $1,555.
Larger clusters of risk appear near $1,426 and $1,362, with a combined exposure exceeding $379 million. If the price continues to decline, these leveraged positions may be liquidated en masse, transmitting additional selling pressure to the spot market.
Chain liquidation or further amplification of volatility
This type of liquidation risk has drawn attention because forced liquidations often generate additional sell pressure during downtrends. If Bitcoin and Ethereum continue to break below their current ranges, the market could experience a new round of deleveraging, potentially amplifying short-term volatility.
The market’s focus has now shifted from a simple price decline to whether liquidations will continue to spread. If major assets fail to stabilize within the current range, passive liquidation pressure on exchanges and on-chain lending protocols may remain elevated.