The cryptocurrency market capitalization fell to $2.62 trillion today, shedding $70 billion as over $600 million in leveraged positions liquidated within a single hour.
Bitcoin dropped 2.8 percent to $78,979. Ethereum fell 4 percent to $2,262. XRP slid 6.1 percent to $1.24, while Solana declined 5.5 percent to $96.66.
The speed and scale of the unwind points to aggressive deleveraging across derivatives markets. As prices fell, leveraged longs hit margin call thresholds, triggering automated sales that pushed prices lower—a classic cascade effect in thin markets during volatility spikes.
The liquidation cascade underscores the structural leverage embedded in crypto derivatives markets. When risk-off sentiment hits, forced closures accelerate the sell-off far beyond what spot selling alone would produce.
