Crypto Bloodbath: Bitcoin Liquidations Hit $249M as Binance and Bybit Lead Flush

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Heavy long liquidations and falling open interest signal sharp deleveraging as spot demand weakens across U.S. markets.

Hold onto your hats, folks, because crypto markets have been hit with a serious hangover. In just the past 24 hours, over 123,000 traders got liquidated as the market decided it was time to party… with other people’s money. The total carnage? A cool $249.77 million, with one unfortunate soul on Bybit getting wiped out for $7.13 million. Ouch. Looks like someone didn’t read the “don’t leverage your rent money” memo.

Binance and Bybit See $128M in Liquidations as Leverage Unwinds

And guess what? The big boys Binance and Bybit were leading the charge, with a combined liquidation total of $128 million. Bitcoin took the brunt of the beating, with $75.36 million flushed down the drain, while Ethereum saw $66.75 million evaporate like a bad dream. Other cryptocurrencies? Eh, they barely accounted for over $40 million. Basically, this was the Bitcoin-Ethereum show, and the rest were just supporting characters.

In the past 24 hours, 123,310 traders were liquidated, the total liquidations comes in at $249.77 million.

The largest single liquidation order happened on Bybit – value $7.13M.

– CW (@CW8900)

Here’s the scoop: Binance recorded $64.82 million in liquidations, and Bybit came in with $63.62 million. It’s like a race to the bottom, and long positions were the big losers, suffering a whopping $148.07 million in liquidations. Short positions? Meh, just $101.70 million. You know, not every bet pays off when you’re trying to catch a falling knife.

Let’s talk about open interest, shall we? It’s not just regular profit-taking. This is full-on, aggressive deleveraging. Bitcoin’s open interest was once flaunting between $45 billion and $47 billion during the good old days of 2025, but now it’s slinking back to the low-$30 billion range, like it’s trying to hide under the covers after a bad breakup.

Image Source: CryptoQuant

And here comes the chain reaction. The price dips below a key support level, and suddenly, every leveraged trader in sight is forced to liquidate. As losses pile up, exchanges go into automatic “close all positions” mode, and things get even uglier. The $7.13 million liquidation on Bybit? That was a case of big dogs and retail traders getting caught in the same net.

Once upon a time, when Bitcoin was flirting with $80,000 to $100,000, open interest was through the roof. Now? It’s been squashed harder than a fly on a windshield. And just like that, many traders are looking at their positions like, “Uh-oh, didn’t see that coming.”

Bitcoin Struggles for Support as ETF Inflows Fade and Spot Selling Grows

Now let’s talk about the ETF scene. We saw $254.46 million in Bitcoin inflows, but this was a “meh” kind of inflow-totally not the heroic, “everything’s going to be fine” type of support that we saw in past market dips. When the market goes red, ETF buyers are doing the crypto equivalent of packing up their toys and going home. They’re definitely not sticking around for the after-party.

Check this out: Bitcoin has been trading at a discount on Coinbase. The Coinbase Premium Index has been in negative territory for a while, meaning U.S.-based investors are selling while offshore exchanges are getting all the action. Just another day of “let’s all panic sell together.”

Image Source: CryptoQuant

So, what does this all mean? Forced liquidations, declining open interest, sketchy ETF inflows, and a negative Coinbase premium all suggest one thing: traders are packing it in. The leverage built during the good times was quickly obliterated once the market hit a rough patch. Position sizes are smaller, and people are more cautious-except, of course, for the ones still trying to get rich quick.

The million-dollar question: Will spot buyers step in and save the day? Or are we in for more of the same sharp swings as traders take their toys and go home? Only time will tell, but it’s safe to say that crypto’s rollercoaster ride isn’t stopping anytime soon.

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2026-02-28 01:03