Key Highlights
- More than $657 million in crypto was liquidated in the past 24 hours, influenced by a ceasefire announcement.
- Bitcoin led liquidations with $284M, followed by Ethereum at $136M, as prices surged on renewed risk appetite.
- The easing of tensions around the Strait of Hormuz boosted market sentiment, but ongoing geopolitical uncertainty could trigger further volatility.
The cryptocurrency market has witnessed massive liquidation, surpassing $657.89 million in the past 24 hours, as per the real-time data shared by Coinglass. The liquidation is triggered by news of a two-week US-Iran ceasefire, resulting in a sharp short squeeze over major assets.
The ceasefire was announced late Tuesday, in which President Donald Trump agreed to suspend attacks on Iran. Meanwhile, Tehran requested to reopen the Strait of Hormuz, easing fears of continued energy disruptions and wider regional conflict.
The market reacted immediately by sending Bitcoin (BTC) and Ethereum (ETH) higher and wiping out heavily leveraged short positions.
Bitcoin leads with highest liquidations
Bitcoin is leading the liquidations with $282.46 million, followed by Ethereum, standing at $135.63. Other notable losses include Solana ($20.12M), XRP ($4.75M), TAO (2.33M), and various altcoins.
In exchange liquidations, Hyperliquid recorded the highest, being at $236.41 million, with shorts dominating 63.86% of the activity. It was then followed by Binance, Bybit, and Bitget, showing heavy liquidations at $111.47M, $106.64M, and $61.54M, respectively.
In total, around 121,416 traders were liquidated in the past day. The largest single order was a $20.33 million BTC-USD liquidation on Hyperliquid.
Contrasting geopolitical resilience
The US-Iran agreement, brokered by Pakistan, came a few hours before Trump’s self-imposed deadline. Markets had been pricing in a significant risk premium due to the conflict’s impact on global oil trade.
With the Strait of Hormuz potentially reopening as early as this week, risk appetite returned quickly, punishing traders who had bet on further downside.
This event marked one of the largest single-day liquidation events of this year and contrasts with March’s geopolitical resilience, when Bitcoin and Ethereum actually surpassed gold and other traditional assets at the time of the peak of the war.Â
Broader outlook
The ceasefire has given a short-term relief; however, it remains fragile. U.S. officials, including Vice President JD Vance and Defense Secretary Pete Hegseth, have so far indicated that military options remain on the table if Iran does not negotiate in good faith or completely reopen the Strait of Hormuz.
Any update on the matter could quickly reverse the sentiment and set off another volatility spike.
Also read: Ethereum Foundation to Convert 5,000 ETH into Stablecoins via TWAP
