Macroeconomic fluctuations caught over-leveraged long positions off guard, with nearly 1 billion dollars getting liquidated in the crypto market in a single day.

2025-06-06 08:20:18

Gate News bot message, in the past 24 hours, over 223,300 traders in the Crypto Assets market have been Get Liquidated for more than 980.9 million dollars, among which long positions have been liquidated for 876.23 million dollars.

Vincent Liu, Chief Investment Officer of Kronos Research, stated: “The $980 million liquidation event is a perfect storm caused by the conflict between Trump and Musk, macro concerns triggered by tariffs, and an over-leveraged market. The structural fragility of Crypto Assets may lead to automatic liquidations that can quickly snowball, turning market sentiment-driven declines into rapid market closings.”

Liu stated that the liquidation amount of long positions indicates that over-leveraged traders were “caught off guard” by the plunge in BTC and ETH, and excessive bullish sentiment has intensified the market correction, which is unfavorable for investors. Investors are now focused on the U.S. employment data to be released later on Friday, as well as the Consumer Price Index data set to be released on June 11, which are expected to be the “main catalysts” for the next price movement.

Source: The Block

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