Bitcoin Liquidation Imbalance Surges 1,724%, Surprising Market
- A rare 1,724% liquidation imbalance in Bitcoin caught short sellers off guard.
- BTC short liquidations totaled $3.66 million in 12 hours.
- No official commentary from major leaders or regulators on this imbalance.
In a rare market event on July 13, 2025, Bitcoin experienced a 1,724% liquidation imbalance, largely affecting short positions across major exchanges.
The event highlights potential risks of over-leveraged positions in the crypto market without triggering major news or external developments.
Bitcoin Sees $3.66 Million in Short Liquidations
Bitcoin’s 1,724% liquidation imbalance in a short 12-hour period emphasized the vulnerability of leveraged positions. This event led to $3.66 million in short liquidations as per CoinGlass data.
The imbalance was marked by minimal long liquidations amounting to $197,660. Such drastic shifts are usually associated with a lack of immediate response from top cryptocurrency leaders.
97,000 Traders Affected by Liquidation Wave
Immediate effects included a significant wipeout of bearish bets, with traders experiencing large unrealized losses. Over 97,000 traders were liquidated, including a $2 million BTC/USDT position.
This situation poses potential implications for market stability and regulation. Despite the significant liquidations, no regulatory bodies have issued a formal response regarding this market activity. The 1,724% liquidation imbalance reflects a violent, one-sided wipeout of short positions as Bitcoin broke above $118,000, leading to the forced closure of many high-leverage bearish bets.
Excessive Leverage Concerns Arise Amid Market Imbalance
Similar instances, like the July 8, 2025 event, also demonstrated large imbalances due to excessive leverage. Such patterns are generally indicative of market corrections and resets.
Historically, these events can prompt temporary volatility but often stabilize without lasting consequences. Experts point to the need for caution in leveraging strategies.
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