Crypto market suffers $9.4 billion liquidation in 24 hours

The global cryptocurrency market witnessed one of its most catastrophic crashes in history on Thursday night, as over $9.4 billion worth of positions were liquidated within 24 hours. The massive selloff, described by analysts as “the largest single-day liquidation event ever,” triggered steep price declines across nearly all major digital assets.

According to data from Coin Bureau and Watcher. Guru, the event surpassed previous market meltdowns linked to the LUNA collapse (2022), the COVID-19 crash (2020), and even the FTX implosion (2022).

Bitcoin fell by over 7%, while Ethereum dropped nearly 11%. Other major altcoins like BNB (-14%), XRP (-21%), and Solana (-19%) also saw double-digit losses. The entire crypto market briefly plunged into red, wiping billions off the global market capitalisation within hours.

Analysts attribute the sudden crash to a combination of highly leveraged positions, macro uncertainty, and renewed regulatory concerns across major markets. The scale of the liquidations suggests that overextended traders, particularly those using derivatives platforms, bore the brunt of the losses.

“This is a textbook example of how fragile crypto liquidity can be under stress,” said one blockchain market observer on X (formerly Twitter). “It’s a historic reminder that even institutional players are not immune when market sentiment flips overnight.”

The event comes at a time when investors were cautiously optimistic about Bitcoin’s next halving cycle and the growing institutional adoption of Ethereum ETFs. Thursday’s bloodbath, however, has injected fresh volatility into the market, forcing exchanges and traders alike to reassess risk exposure.

Despite the chaos, long-term holders appear largely unfazed, with on-chain data showing minimal outflows from cold wallets. Still, the sentiment across the broader crypto community remains one of disbelief and caution.