Liquidation Analysis: More than 100,000 people were liquidated worldwide in 24 hours

Introduction

On April 29, 2025, the global cryptocurrency market experienced a slight wave of liquidations. According to Coinglass data, in the past 24 hours, a total of 108,119 investors were liquidated worldwide, with a total liquidation amount of US$257 million. Although the data is not shocking, it also reminds investors to pay more attention to risk management in market fluctuations.

This article will use multi-level data analysis to deeply explore the main characteristics of this liquidation event, the main currencies involved, market drivers, and implications for investors. We hope to provide investors with practical risk management advice and insights into future market trends through a comprehensive analysis of market dynamics.

View liquidation data now:
https://www.gate.io/crypto-market-data/funds/liquidation

Overview of liquidation: Overall data analysis

In the past 24 hours, a total of 108,119 liquidations occurred in the global cryptocurrency derivatives market, with a total liquidation amount of US$257 million.

In this liquidation wave, the liquidation amounts of major currencies are distributed as follows:

• BTC: Liquidation amount of US$60.46 million, accounting for 23.5% of the total liquidation amount. As the market leader, BTC has the largest trading volume and position, and its price fluctuations directly affect market sentiment. Recently, BTC prices have fluctuated near key resistance levels, which may have triggered the liquidation of a large number of leveraged orders.
• ETH: Liquidation amount of US$52.91 million, accounting for 20.6%. The liquidation scale of ETH is close to that of BTC, reflecting its high activity in the derivatives market. Market expectations for ETH’s technical upgrades (such as Pectra upgrades) may lead to over-leverage of some investors.
• SOL: Liquidation amount of $12.21 million, accounting for 4.4%. SOL’s liquidation amount is low, but it shows its appeal in the field of high-performance blockchains. The recent growth of the SOL eco may have attracted more leveraged traders.
• XRP: Liquidation amount of $9.44 million, accounting for 3.7%. XRP’s liquidation is closely related to the US SEC’s recent decision to approve three XRP ETFs. From the specific data, the liquidation amount of long orders is more than 1 times that of short orders, indicating that the market’s response to ETF approval has been priced in advance, resulting in price corrections triggering liquidations.

Specific to Gate.io, the liquidation data is shown in the figure below, which is basically consistent with the proportion of the entire network data.

Analysis of market volatility and liquidation reasons

The occurrence of liquidation events is usually related to market volatility and specific event-driven factors. Although the overall market volatility in the past 24 hours was small, local price jumps and event-driven games have exacerbated the scale of liquidations.

1. XRP ETF event: The US SEC approved three XRP ETFs on April 28, which should have pushed up the price of XRP. However, the market seems to have digested this expectation in advance, causing the price to pull back after the event. The liquidation amount of long orders is significantly higher than that of short orders, indicating that some investors were overly optimistic before the event and failed to adjust their positions in time.
2. Market dominance of BTC and ETH: The liquidation amount of BTC and ETH accounts for nearly 50% of the total amount, reflecting its role as a market vane. When the price of BTC or ETH hits key technical levels (such as support or resistance levels), market sentiment may quickly turn, leading to chain liquidations.
3. Technical trigger: From the analysis of Coinglass heat map, liquidation events are mostly concentrated in periods of rapid price fluctuations. Leveraged orders accumulate near key points, and once the price breaks through, chain liquidations are triggered.

In addition, rapid changes in market sentiment also exacerbate liquidations. For example, some investors may increase leverage due to short-term benefits (such as XRP ETF), but fail to foresee the complexity of market games, resulting in liquidation of positions.

Investor response strategies: Risk management suggestions

In the face of frequent liquidation events, investors need to adopt the following risk management strategies to reduce losses:

1. Control leverage: High leverage amplifies returns while also amplifying risks. Investors are advised to choose low to medium leverage (such as 2-5 times) according to their risk tolerance.

2. Set stop loss and take profit: Set clear stop loss and take profit points when opening a position to avoid total loss due to sudden market fluctuations.

3. Diversify investments: Avoid concentrating funds on a single currency or orders in a single direction. Diversified investments can effectively reduce ic risks.

4. Pay attention to market dynamics: Track market liquidation trends through Coinglass futures liquidation data and adjust positions in a timely manner.

5. Use hedging tools: Hedge potential risks through options or reverse contracts, especially before and after major events (such as ETF approval).

Future Outlook: Market Trend Forecast

The volatility of the cryptocurrency market is expected to continue, especially the volatility of AI, Meme and SUI eco-related tokens may be much greater than other sectors, and liquidation events will continue to be the norm in derivatives trading. Here are a few key predictions for future market trends:

• Short-term volatility: BTC and ETH price movements will continue to dominate market sentiment, and investors need to pay attention to key technical positions and macroeconomic events (such as the Fed’s interest rate decision).
• Event-driven opportunities: Regulatory events like the XRP ETF may continue to trigger market speculation, and investors need to be wary of the deviation between expectations and actual results.
• Long-term stability: With the increase of institutional investors and the improvement of the regulatory framework, market liquidity may improve, but short-term volatility still needs to be handled with caution.

Conclusion

The crypto market is known for its high leverage and high volatility, and liquidation is the norm. Through data analysis, we found that market volatility, event-driven and leveraged trading are the main reasons for liquidation. In the future, investors need to deal with market uncertainties through strategies such as controlling leverage, setting stop losses and diversifying investments.

Risk warning: The content of this article is for reference only and does not constitute any investment advice. Investing in cryptocurrency derivatives is high-risk and may result in capital losses. Investors should bear the risks themselves.