What are Crypto Liquidations?
Crypto Liquidations can be referred to in Chinese as “强制平仓” or “Get Liquidated”. It refers to users engaged in leveraged trading, where the account assets are insufficient to meet margin requirements, leading the exchange to forcibly close the position to prevent further losses. It is an automatic risk control measure under the leveraged mechanism.
Liquidation usually occurs during periods of severe market fluctuations, especially when the market direction of BTC and ETH suddenly reverses.
Latest liquidation data: July 1, 2025 - July 2, 2025
Figure:https://www.gate.com/trade/BTC_USDT
According to the data released on July 2 by the encryption data websites CoinGlass and CryptoQuant, the following is the liquidation situation within 24 hours:
The total liquidation amount is approximately 197 million USD, of which:
- Long positions liquidation of about 132 million USD
- Short position liquidation of approximately 65 million USD
The largest single liquidation occurred on the OKX platform, worth nearly 9.31 million dollars.
The main liquidated cryptocurrencies are still BTC and ETH:
- BTC: approximately 98.2 million USD
- ETH: approximately $41.1 million
This set of data is a complete liquidation statistics from July 1, 2025, 08:00 to July 2, 08:00 (UTC), with time consistency and reference value.
Why will you Get Liquidated? - Market Background Analysis
- BTC market experiences wild fluctuations: Bitcoin dropped from a high of $107,400 to $105,300 on July 1, with a decline of nearly 2% within 24 hours. Some long traders using high leverage were thus Get Liquidated.
- ETH synchronously weakened: Ethereum also fell from a high of $2,493 to around $2,392, a 24-hour decline of about 4%. Due to the high leverage trading ratio of ETH, long positions have been significantly Get Liquidated.
- Macroeconomic news disturbance: There are rumors that the Federal Reserve will announce potential “regulatory tightening signals” at the end of the quarter, coupled with large holders reducing their positions when the Asian market opened, causing panic sentiment to spread in the market.
How to cope? - Advice for beginners
If you are a newcomer to the market, facing such frequent Get Liquidated phenomena, you might as well keep the following points in mind:
- Leverage Control: It is recommended to keep the leverage multiple below 3×, and never blindly chase highs and sell lows.
- Set Stop Loss: A stop loss line should be set for every trade, even for spot positions, and it is advisable to preset a retreat point.
- Build positions in batches, don’t go all in: Heavy investment at once is prone to market reversal liquidation; building positions in batches is more prudent.
- Understand the liquidation zone: Refer to the “liquidation zone” or “high liquidation density zone” provided by community analysts to avoid blindly opening positions in these locations.
Summary
Crypto Liquidations are a manifestation of systemic risk in leveraged trading. This article focuses on real market data from July 1 to July 2, 2025, reminding novice investors to control risks and understand the logic of Get Liquidated in order to stabilize their positions amid volatility.
