$1 Billion Crypto Liquidation Wave Hits Ether Traders Six Times Harder Than Bitcoin Traders

Ether traders suffered heavier losses than Bitcoin investors during the latest crypto market sell-off, as roughly $356 million in ETH positions were liquidated over 24 hours. Bitcoin recorded $298 million in liquidations, despite having a market capitalization more than five times larger than Ether’s.

Liquidations happen when leveraged traders lose enough collateral to trigger the automatic closure of their positions. Exchanges sell the affected assets to cover the losses, potentially adding to downward price pressure and putting other leveraged trades at risk.

The broader cryptocurrency market saw $1.19 billion in liquidations over the same period, with more than $1 billion coming from long positions held by traders anticipating higher prices. The biggest individual liquidation involved an Ether position worth nearly $20 million on Hyperliquid, a decentralized exchange that supports leveraged trading.

Measured against market capitalization, Ether’s liquidation impact was approximately six times greater than Bitcoin’s. ETH recorded around $1.2 million in liquidations for every $1 billion in market value, compared with approximately $180,000 for BTC. Ether fell more than 3% to about $2,490, while Bitcoin lost roughly 1%.

Solana positions contributed another $71 million in liquidations, followed by XRP at $34 million and NEAR at $25 million. Liquidations across the remaining tokens totaled approximately $119 million.

Bitcoin’s price dropped from around $83,200 to a low of approximately $80,400 late Thursday. The move followed the release of Federal Reserve minutes showing that most officials expected another interest-rate increase before the end of the year. Separately, reports of Pentagon preparations for a possible resumption of major combat operations in Iran sent oil prices higher, increasing pressure on risk assets.

Additional uncertainty emerged after Ethereum researcher Justin Drake warned that advances in artificial intelligence could threaten the mathematical systems protecting cryptocurrency wallets sooner than expected. Traders had also built up leveraged exposure during the week as Bitcoin traded between $83,000 and $87,000, leaving positions vulnerable when the price broke below that range.

Read More: Bitcoin and Ether holders urged to enter ‘bunker mode’ against possible AI attacks.

Bitcoin’s recovery has shifted the pressure toward short sellers. BTC rebounded to around $82,200 after President Donald Trump said the United States would not attack Iran before the midterm elections. Traders betting on further declines accounted for approximately 78% of the $25 million liquidated over the previous four hours. In the most recent hour, nearly $12 million of roughly $13 million in liquidations came from short positions.

The rebound comes a day before the anniversary of October 10, 2025, when the cryptocurrency market suffered a record $19 billion in liquidations in a single day—around 16 times Thursday’s total. Bitcoin is now trading roughly $800 below $83,000, the level where Thursday’s sell-off started.