Crypto Market Faces Heavy Stress as Liquidations Cross $636 Million

The crypto market saw intense pressure over the last 24 hours as traders dealt with one of the sharpest wipeouts this month. The liquidation wave spread across major exchanges and affected thousands of leveraged traders. Many market participants now watch price levels closely as the market shows fresh signs of stress. This event once again highlights how fast sentiment shifts in a digital asset ecosystem that reacts within minutes.

The scale of this liquidation showed the market’s vulnerability during high-leverage phases. Traders entered large positions during recent rallies but failed to manage risk when sentiment cooled. This created an ideal environment for a sharp correction that triggered cascading liquidations across major assets. The volume of crypto market liquidations shocked many traders who expected stronger support zones.

New traders also felt pressure during this downturn. Many entered long positions expecting short-term rebounds. However, rapid price drops forced exchanges to liquidate these positions before recovery attempts began. This chain reaction created deeper market volatility and shifted momentum across the entire crypto landscape.

🚨 NOW: Over $636 million in crypto positions were liquidated in the last 24 hours, with $567.35M from longs and $69.54M from shorts. pic.twitter.com/Q6FPKW6BiH

— Cointelegraph (@Cointelegraph) December 1, 2025

Long Traders Take Heavy Losses as Sharp Drop Hits Market

The most striking detail in this event came from the imbalance between long and short liquidations. Long traders lost over $567.35 million, showing how strongly the market moved against bullish bets. Many entered risky crypto long positions during the recent upswing and hoped to catch extended rallies. However, sudden downside pressure erased those expectations and created widespread panic.

Momentum flipped quickly during late trading hours. Traders saw sharp moves on Bitcoin, Ethereum, and mid-cap altcoins. Each drop triggered fresh liquidations and pushed total crypto market liquidations higher. This contributed to deeper losses for long traders who ignored warning signs around over-leveraged setups.

Short traders also faced liquidations worth $69.54 million. However, this number looked small compared to the heavy losses from long positions. This gap showed strong upside confidence before the crash. Many traders underestimated market volatility trends that already signaled exhaustion on key charts.

Market Volatility Trends Rise as Fear Returns

The liquidation spike matched rising volatility across major crypto pairs. Analysts tracked wider intraday candles, faster price swings, and tighter liquidity zones on exchanges. These conditions often lead to liquidation clusters when traders use high leverage. Many ignored these alerts and kept stacking crypto long positions despite growing risks.

Traders also reacted to global macro triggers that influenced crypto sentiment. Shifts in risk appetite across equity markets added pressure. Many investors cut exposure across all risk assets. This helped fuel deeper corrections across the crypto ecosystem. Every move added momentum to the ongoing wave of crypto market liquidations.

Social platforms also reflected rising fear as traders posted updates on losses. Many warned others about tightening liquidity and advised caution during uncertain conditions. This fear-based environment pushed many participants to reduce leverage and focus on capital protection.

Conclusion

The last 24 hours delivered a clear message to traders across the world. The crypto market moves fast, and high-leverage setups carry massive risks. The spike in crypto market liquidations showed how quickly a single move triggers a chain reaction. Traders now focus on stability as the market prepares for the next major shift. Clear strategies and strong discipline will matter more than ever in this environment.