Bitcoin Longs Wiped Out on Binance: Is Overleveraging Catching Up with Traders?
According to a new report,shared by CryptoQuant, Binance has just recorded its largest single-day Bitcoin long liquidation in over five years. The platform saw $211 million in long positions liquidated in USD terms, marking an unprecedented event driven by a rapid intraday price correction.
Extreme Liquidation Triggered by Sharp Drop
The liquidation wave came as Bitcoin experienced a sudden price dip, leading to the forced closure of a significant number of overleveraged long positions. The Santiment chart shows how this abrupt move followed a steep rise in BTC’s price to over $110,000, before plummeting back toward the $104K range—now the current trading level.
The green bars in the chart reflect long liquidation volume, which surged past $200 million at the peak of the drawdown.
Warning Sign for Market Structure
Santiment warns that this event underscores a growing imbalance between market expectations and actual price movement. It also highlights the vulnerability of traders who rely too heavily on leverage in increasingly volatile environments.
Such sharp liquidation events often expose market fragility and lead to rapid deleveraging, which can deepen corrections and shake investor confidence.
Kosta Gushterov
Reporter at Coindoo
Kosta joined the team in 2021 and quickly established himself with his thirst for knowledge, incredible dedication, and analytical thinking. He not only covers a wide range of current topics, but also writes excellent reviews, PR articles, and educational materials. His articles are also quoted by other news agencies.
