Crypto Selloff Deepens as $700M of Positions Liquidated
The crypto market faced fresh selling pressure on Wednesday, with total market cap falling to around $2.9 trillion. Bitcoin, Ethereum and major altcoins extended losses, erasing more than $100 billion in market value in less than 24 hours. Despite the sharp correction, the investor sentiment remained in the greed territory with the Crypto Market Fear & Greed Index easing from 73 to 70.
# Bitcoin and Ethereum Lead Crypto Market Drop
Bitcoin (BTC) dropped more than 4% below the $83,000 mark losing most of its recent bullish momentum. The drop put pressure on leveraged traders as the broader market moved lower.
Ethereum (ETH) fared even worse, down around 6% to around $4,436. In the last 24 hours, Ethereum also saw much higher liquidation activity than Bitcoin, suggesting higher volatility in the second-largest cryptocurrency.
Other big cryptocurrencies also fell. XRP, Solana (SOL), Dogecoin (DOGE), and Zcash (ZEC) were down about 3% to 7%. Meanwhile, SKY fell nearly 12% and Uniswap (UNI) was down about 11%, demonstrating the broad-based selling pressure in the altcoin space.
Crypto Market Under Pressure From US Treasury Yields
The recent risk-off move has been largely due to higher U.S. Treasury yields. The 10-year Treasury yield briefly rose above 5.35%, its highest level in about 24 years.
Higher Treasury yields can weigh on risk assets like cryptocurrencies as investors may rotate money into government bonds and other assets that offer yield. Meanwhile, the rise in mortgage rates and renewed worries about inflation have created uncertainty in financial markets.
The benchmark 10-year yield later eased toward 5.30% as traders looked ahead to Treasury buyback activity and the release of the Federal Reserve’s FOMC meeting minutes.# Dollar, oil prices climb as market uncertainty grows
The U.S. Dollar Index (DXY) added to the cautious market environment. DXY reversed to around 102.3 after reaching around 102.50, its highest level since March 2025.
At the same time, rising oil prices have raised fears of inflation. If inflation stays high, investors might expect the Federal Reserve to keep monetary policy tighter for longer, which could put more pressure on speculative assets like cryptocurrencies.
$700 Million Crypto Liquidations
The sharp decline led to roughly $700 million in crypto liquidations over the past 24 hours. Based on the Coinglass data, the long positions accounted for nearly **$650 million, while the short positions hovered around **$50 million.
More than **123,000 traders were liquidated. ** This highlights the magnitude of the leverage-driven correction in the market. The biggest single liquidation was a ETH-USDC position on Binance worth $26.64 million, and the largest Bitcoin liquidation was about $11.75 million.
What the Crypto Crash Means for Investors
The combination of falling prices, higher Treasury yields, dollar strength and huge long liquidations shows leveraged traders are still vulnerable to further volatility. If the selling persists, Bitcoin’s drop below $83,000 and deeper losses for Ethereum may put pressure on the broader market.
Investors are watching BTC and ETH price support levels, Treasury yields, Federal Reserve policy signals and liquidation activity for clues on whether the current crypto market correction will deepen or stabilize.
