Over $1.1 billion in cryptocurrency long orders wiped out in the past week

Over $1.1 billion in long positions have been liquidated across the entire crypto market in the past 7 days, highlighting the severity of the recent downturn. The liquidation wave occurred as major cryptocurrencies continued to decline, triggering forced closures of leveraged positions.

The sharp decline caused many traders to get trapped in bullish bets, especially after previous signs of market recovery. As prices plummeted rapidly, cascading liquidations increased volatility and accelerated sell-offs on major exchanges.

Analysts believe that large-scale liquidations often happen when the market is overly leveraged and overly optimistic. However, "clearing out" leveraged long positions can help reduce speculative pressure and lay a more stable foundation for the market moving forward.