Over the weekend, the crypto market took a major hit, shaking up investors and reminding everyone just how risky this space can be. Over $19 billion worth of leveraged positions—essentially borrowed money used to boost potential returns—were wiped out in a massive liquidation event. To put it in perspective, that’s almost ten times the amount liquidated during the infamous FTX collapse back in 2022.

Bitcoin felt the pressure hard. While its price saw a steep drop, interestingly, the highest trading volumes didn’t happen when it hit its lowest points. Instead, volume spiked when prices were more stable. This suggests that the crash wasn’t triggered by panic selling, but by a sudden and forceful removal of leverage from the system.

Data from blockchain analytics platform Glassnode confirmed that this was the largest futures liquidation in Bitcoin’s history. About $11 billion in open positions vanished almost overnight. Analysts are calling this a “historic deleveraging event,” meaning the market went through a big reset to flush out risky bets and speculative excess. Funding rates across crypto also dropped to levels not seen since the 2022 bear market, indicating that traders are becoming much more cautious.

Ethereum and other major altcoins didn’t escape the storm either. Ethereum dropped all the way down to $2,600. Popular coins like Solana, XRP, and Avalanche also saw double-digit losses. XRP in particular failed to hold a key support level, despite strong trading volume in recent weeks. However, some analysts believe that after this big shakeout, capital might start flowing back into major crypto projects soon.

In short, what happened was a wake-up call for crypto traders relying too heavily on leverage. While painful in the short term, these types of corrections can help build a stronger foundation for future price growth by removing risky positions from the market. For now, all eyes are on Bitcoin to see if it can stay above the $114,000 mark—a key level that could help restore investor confidence.

Keywords: crypto crash, Bitcoin liquidation, Ethereum drop, leveraged trades, altcoin losses, market correction, Glassnode data, funding rates, deleveraging event, XRP support level, Solana decline, Avalanche price dip, crypto volatility