Bets on a crypto rally unraveled as $563 million in positions were liquidated, hitting Bitcoin and Ether the hardest.

Bitcoin and ether spearheaded a sweeping liquidation event as crypto markets slid on intensifying macroeconomic pressures, dealing a heavy blow to bullish traders.

Over the past 24 hours, roughly $563 million in leveraged long positions were wiped out across crypto futures markets, marking the largest single-day liquidation since Feb. 6, when bitcoin’s سقوط toward $60,000 triggered $1.84 billion in losses, according to Coinglass.

Liquidations on the short side were comparatively minimal at $65 million, highlighting the extent of bullish positioning prior to the downturn.

Ether accounted for the largest share of the unwind, with $244 million in long positions liquidated, followed by bitcoin at $160 million. Together, the two dominant cryptocurrencies drove the majority of the market’s forced deleveraging.

The sell-off underscores the risks of leveraged trading, where positions are automatically closed once losses exceed posted collateral. While leverage can amplify gains, it also accelerates downside moves, often triggering cascading liquidations during periods of volatility.

That scenario unfolded as both bitcoin and ether declined, dragging the broader digital asset market lower.

Bitcoin has shed around 5% over the past week, slipping below the $77,000 level, while ether has dropped 10% to hover near $2,129.

The downturn appears linked to stronger-than-expected U.S. inflation data, which pushed Treasury yields higher and dampened demand for risk assets globally. Rising yields, seen across major economies, tend to reduce the appeal of non-yielding assets such as cryptocurrencies.

The market weakness comes even as regulatory momentum builds in the U.S., with the Clarity Act advancing through the Senate Banking Committee, bringing the industry a step closer to a formalized legal framework.

Still, the latest sell-off serves as a reminder that macroeconomic forces can outweigh crypto-specific developments. While regulatory progress may support long-term growth, it offers limited protection against broader shifts in liquidity conditions and investor risk appetite.

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