Crypto long liquidations hit $967M, Ethereum leads at $309M

Bitcoin traded at $109,200 during the session, down about 6% for the week. That decline followed a drop to $112,000 earlier in the same week. This was the second major liquidation cascade for longs in a few days.

On-chain analytics provider Glassnode said the deleveraging event resets market positioning and reduces the immediate risk of further cascading declines.

The 88% concentration in long closures highlights how crowded the bullish bet had become. High leverage multiples available on many crypto exchanges make periodic liquidation cascades a recurring feature of the market.

Open interest, the total value of active derivatives contracts, will show the next signal. If volumes rebuild quickly, the same leverage imbalances could recur. A slower recovery would align with Glassnode's assessment that the market structure has become healthier after the closures.