Crypto Liquidations Surpass $1.08B as 182K Traders Get 'Rekt'

Crypto markets experienced a severe downturn on January 20, resulting in more than $1 billion in liquidations and leaving over 182,000 traders with significant losses within a single day.

Key Takeaways

Crypto markets saw over $1.08 billion in liquidations on January 20.
More than 182,000 traders experienced liquidations, predominantly among long positions.
Major trading platforms reported heavy losses, including Bitget, Hyperliquid, and Binance.
High-profile traders, such as Machi Big Brother, suffered notable financial damage.
Market indicators suggest a fragile environment, with many altcoins showing signs of persistent selling pressure.

Crypto traders wiped out in $1.08b liquidation cascade

The cryptocurrency market faced a harsh reckoning on January 20, as nearly $1.08 billion was wiped out in a significant liquidation event. This upheaval primarily affected long positions, with Bitcoin and Ethereum futures being particularly hard hit. Key trading platforms reported substantial liquidations, and even prominent investors were not immune to losses.

$1.08B Lost in 24 Hours

On January 20, the cryptocurrency sector was hit hard, experiencing substantial long liquidations. Exchanges reported massive losses across their derivatives markets: Hyperliquid recorded $132.39 million in long liquidations, Bybit saw $91.35 million, and Binance reported $64.08 million. The most significant single liquidation occurred on Bitget, with a BTCUSDT_UMCBL position worth $13.52 million being wiped out.

High-Profile Traders and Forced Selling

Liquidations occur when exchanges close leveraged positions due to insufficient margin to cover losses. This forced selling exacerbates market declines, resulting in a vicious cycle. Notable figures in the trading community, such as Machi Big Brother, were notably affected, enduring five liquidations in one day that amounted to $24.18 million in losses. His remaining holdings of 2,200 ETH, valued at approximately $6.67 million, are at risk if Ethereum prices drop further.

Technical Stress and RSI Breakdown

Analyzing the market's structure reveals it is currently fragile. Most altcoins are now trading with a daily Relative Strength Index (RSI) below 50, indicating continuous selling pressure. When the RSI falls below this midpoint, it is interpreted as a bearish signal. One analyst remarked that many altcoins are struggling under these circumstances, with a high ratio of liquidations to open interest, which highlights the widespread forced liquidations in the last 24 hours.

Spot Prices: Major Cryptocurrencies Under Pressure

As of January 21, Bitcoin (BTC) was trading between $89,300 and $89,471, down about 2–3% within 24 hours after reaching a low of approximately $88,249. Ethereum (ETH) was priced between $2,961 and $2,964, reflecting a decline of about 4–5% after dropping sharply from prices above $3,180. This risk-averse atmosphere was also echoed in broader market trends, as altcoins experienced heavier percentage losses compared to Bitcoin.

For further details, readers can view the original reports on Yahoo Finance regarding the liquidation wave, Bitcoin and Ethereum price histories, and additional insights on market dynamics via CoinMarketCap and crypto.news.