Bitcoin, Ethereum, XRP crash as crypto liquidations top $1.5B
Major cryptocurrencies like Bitcoin, Ethereum, and XRP experienced significant losses, with over $1.5B in liquidations following a $6.3B Binance hack. Bitcoin dropped below $77,000, Ethereum fell below $2,200, and XRP lost 7%. Binance suspended withdrawals and pledged to cover customer losses. The market also faced pressure from US monetary policy concerns.
How this was made
The 30-second read
Why it matters
Forced liquidation of leveraged longs (about $1.34B of $1.55B) and rising demand for downside options likely amplify downside momentum and volatility across major coins.
Market read
Traders can use the quantified liquidation and derivatives positioning to gauge near-term volatility and downside hedging demand across BTC, ETH, and high-beta alts.
What to watch
Liquidation totals can overstate persistent downside if rebounds occur as forced sellers are exhausted; traders should monitor whether withdrawals suspension and attacker-linked transfers continue to worsen.
Background
The selloff is attributed to a reported Binance security breach, including withdrawal suspension and claims of covering customer losses, with blockchain investigators linking the attack to North Korea-associated hackers.
Ticker impact
Bitcoin sold off below $77,000 after the reported Binance hack, with CoinGlass liquidations totaling about $499M tied to BTC longs.
Likely downside pressure as forced long liquidations and uncertainty amplify volatility, with partial rebounds possible on stabilization.
The article links the selloff directly to the Binance breach and quantifies BTC liquidation losses, a near-term driver of spot and derivatives pressure.
Ethereum dropped below $2,200 and saw about $358M in liquidated leveraged positions following the Binance security breach.
Likely continued weakness or choppy trading as markets price further risk while liquidation-driven selling persists.
The text provides both the price drawdown and the magnitude of ETH liquidations, plus notes increased put demand for downside protection.
XRP fell about 7% to around $1.21 and recorded roughly $38.1M in liquidations during the same Binance-hack-driven unwind.
Likely downside bias while liquidation flows and risk sentiment remain impaired.
The article quantifies XRP liquidations and ties the move to the broader market shock, but provides less direct XRP-specific linkage beyond correlation.
Solana slipped toward $95 and had about $82.6M in liquidated positions as leveraged traders were forced out.
Likely underperformance versus majors until open interest and liquidation pressure normalize.
The article gives SOL price direction and liquidation/open-interest declines, but does not isolate SOL-specific catalysts.
BNB, tied to Binance, fell about 7.1% to around $698.65 and accounted for large liquidation exposure during the incident.
Likely continued weakness as traders reassess Binance-linked risk and liquidity conditions.
The text ties BNB’s drawdown to the Binance breach narrative, but does not provide a separate BNB-specific liquidation figure beyond broader snapshots.
Dogecoin traded near $0.075 and recorded about $18.6M in liquidations as selling spread across altcoins.
Likely choppy-to-down bias while altcoin liquidation pressure persists.
The article provides liquidation and price direction, but the linkage is primarily through broad market contagion.
Market effects
Derivatives deleveraging (liquidations, open interest declines, put skew) signals elevated volatility risk across crypto beta.
Limited direct regional impact; crypto risk sentiment can spill into broader risk assets via correlation during stress.
Global crypto market-wide liquidation totals ($1.55B) indicate systemic derivatives stress rather than isolated token moves.
Counterpoint
The article notes partial recovery by Friday morning; if Binance’s frozen/covered-loss narrative gains credibility, liquidation-driven selling could fade quickly.
Key entities
- crypto_exchangeBinance
Reportedly suffered a major security breach, suspended withdrawals, and said it would cover customer losses.
- data_providerCoinGlass
Reported liquidation totals and derivatives positioning changes used to quantify market stress.
- blockchain_analyticsTRM Labs
Linked the attack to North Korea-associated hackers per the article.
- blockchain_analyticsElliptic
Also cited as linking the attack to North Korea-associated hackers per the article.
