Massive crypto liquidations lead to market volatility – What traders need to know now

NotSatoshi · 2026-01-13T09:01:31+00:00

The ongoing liquidation wave in the cryptocurrency market resulted in over $1.1 billion worth of forced position closures within 24 hours, indicating heightened volatility and market stress. Major altcoins and Bitcoin suffered significant losses, while institutional interest appears to decline, accentuated by Bitcoin ETF outflows totaling nearly $799 million. Analysts note weak technical indicators, suggesting sustained downward pressure. Traders are reminded to reassess risk management strategies in this precarious environment.

NotSatoshi

2026-01-13 09:01:31

Abstract generation in progress

The liquidation wave in the crypto market continues: in just 24 hours, positions worth over $1.1 billion were forcibly closed. This is a clear sign of the tense market situation and the increased volatility that investors currently have to deal with.

Numbers tell a clear story

CoinGlass data reveal the extent of the market strain: long positions valued at $1.08 billion were liquidated, indicating intense selling pressure. The biggest losers in this scenario were, as expected, the major altcoins and Bitcoin itself.

Bitcoin experienced a movement of +1.90% in 24 hours with a trading volume of $938.71 million. Ethereum followed with a gain of 0.88% and a volume of $461.09 million. Dogecoin also showed a moderate increase of 2.78%, although the volume was significantly lower at $27.05 million.

Institutional disinterest accelerates the decline

A particularly concerning aspect: Bitcoin ETF outflows in the past week amounted to $798.95 million. This signals a decline in institutional confidence and suggests that large players are reducing their positions.

Technical factors amplify the pressure

Analysts are observing weak technical indicators that point to a continued downward trend. The lack of a clear trigger for the liquidation cascade makes the situation especially tricky – it’s less a correction driven by external factors and more an endogenous market process where leverage trades and positions are liquidated in cascades.

For traders, this is a reminder to review risk management strategies and keep an eye on liquidation levels.

BTC3,16%

ETH3,13%

DOGE4,77%

LONG1,99%

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