- Crypto assets have sustained more than $313 million in liquidations on Tuesday.
- Ethereum liquidations ranked highest after crossing $100 million.
- Bitcoin's open interest dropped by $2.4 billion following the price correction.
The crypto market experienced over $313 million in liquidations on Tuesday after Bitcoin plunged below $60K, per Coinglass data. Long traders have sustained 90% of the total liquidations worth $282 million, a magnitude above $31.36 million in short liquidations.
Bitcoin and Ethereum lead crypto liquidations
Ethereum led the liquidations rank, with over $100 million, of which $93.52 million were liquidated long positions. Ethereum has plunged by nearly 9% in the past 24 hours.
Crypto market liquidations
Bitcoin follows closely with over $94 million in liquidations, with long and short liquidations accounting for $85.97 million and $8.87 million, respectively. Notably, Bitcoin's open interest (OI) has dropped by more than $2.4 billion in the past few hours.
Open interest is the total number of unsettled open long and short positions in the market. A drop in open interest signifies increased liquidations or caution from traders, often due to declining prices.
The correction follows a spike in Bitcoin's funding rate on August 25, which reached its highest level on the DyDx exchange since BTC's all-time high in March, according to Santiment data.
Funding rates are periodic payments exchanged between buyers and sellers of crypto perpetual contracts based on the difference between the futures contracts and its index price.
Bitcoin DyDx Funding rates
Several traders increasingly opened long Bitcoin and Ethereum positions after the Federal Reserve (Fed) Chair Jerome Powell's keynote indicated a potential interest rate cut in September. However, the recent liquidation shows the market moved in the opposite direction.
"When funding rates get extreme in either direction, they are always prone to get liquidated and shoot markets in the opposite direction," noted Santiment analysts.
Solana was also heavily hit, down more than 7% on the day. In the past 24 hours, SOL has seen over $11 million in liquidations, with long and short liquidations accounting for $10.17 million and $1.01 million, respectively.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks

Crypto market wipes out $1 billion in liquidation as Asian markets bleed red
The crypto markets continue to decline on Monday, with Bitcoin (BTC) falling below $78,000. The Asian markets also traded in the red, with Japan’s stock market extending losses to 8.5%, its lowest level since October 2023.

XRP Price Prediction: XRP hangs on a loose thread, deeper correction below $2 impending?
Ripple (XRP) is extending losses below the previous week’s critical level at $2.00, as United States (US) President Donald Trump doubled down on tariffs, stressing that America must solve the trade deficit before making a deal.

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC and XRP head to yearly lows while ETH hits two-year bottom
Bitcoin (BTC) price hovers around $78,600 on Monday after falling nearly 5% the previous week. Ethereum (ETH) and Ripple (XRP) also followed in BTC’s footsteps and declined 13% and 10%, respectively, in the previous week.

Bitcoin could be the winner in the ongoing trade war after showing signs of decoupling from stocks
Bitcoin (BTC) traded above $84,000 on Friday, showing strength despite the stock market experiencing significant declines. The market reaction stems from United States (US) President Donald Trump's clash with the Federal Reserve Chairman Jerome Powell over interest rate decisions.

Bitcoin Weekly Forecast: Tariff ‘Liberation Day’ sparks liquidation in crypto market
Bitcoin (BTC) price remains under selling pressure and trades near $84,000 when writing on Friday after a rejection from a key resistance level earlier this week.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.