Crypto Market Crashes Again, Over $1 Billion Liquidated

Core Insights - Retail traders are maintaining aggressive long positions in major cryptocurrencies despite a recent market downturn, with long ratios for Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and HYPE ranging from 68% to 79% [3] - A significant negative correlation has been observed between long ratios and prices, indicating that as long positions increase, prices tend to decline, which may lead to potential losses for retail traders [4] - Recent data shows over $1.1 billion in positions were liquidated, with $873 million attributed to long trades, suggesting a rapid decline in retail optimism [5][8] Market Dynamics - The Long/Short Account Ratios on Binance are reported as 2.1 for BTC, 2.6 for ETH, 3.7 for SOL, and 2.0 for HYPE, indicating a higher number of long accounts compared to short ones [3] - The total crypto market capitalization has fallen below $3.6 trillion, which may lead to further liquidations and increased market volatility [8] Liquidation Trends - In the past 24 hours, 289,922 traders were liquidated, contributing to a total liquidation amount of $1.11 billion [8] - Excessive liquidations could drain retail traders' capital, making a V-shaped recovery unlikely and keeping the market volatile and range-bound at lower levels [9]