The cryptocurrency market came under heavy selling pressure over the past 24 hours, with Ethereum (ETH) recording the largest liquidation volume among major digital assets. The price decline hit traders betting on a market recovery, particularly those using leveraged positions.

According to BeInCrypto Markets data, the total cryptocurrency market capitalization fell 4.40% to $2.77 trillion over the past 24 hours. Bitcoin (BTC) dropped 2.67% to $81,594, while Ethereum declined 4.46% to $2,429.16.

Altcoins suffered even steeper losses. Solana (SOL) fell 7.11% to $103.62, while Zcash (ZEC) plunged 9.54%.

Ethereum Liquidations Reach $169.23 Million

Data from CoinGlass showed that 172,662 traders were liquidated during the period. Long positions, which profit when prices rise, accounted for 88.9% of total liquidations.

Ethereum recorded the largest liquidation volume at $169.23 million, with 86.3% coming from long positions. The figures highlight how traders betting on higher ETH prices bore the brunt of the market downturn.

Bitcoin followed with $160.48 million in liquidations, of which long positions accounted for 90.2%.

Meanwhile, Solana recorded $60.41 million in liquidations, with 94.2% coming from long positions.

Liquidations occur when a trading platform automatically closes a position because a trader no longer has sufficient margin to maintain it. This often happens in leveraged trading when prices move against a trader’s position.

Bitcoin Long Position Worth $9.65 Million Liquidated

One of the largest individual liquidations involved a BTCUSDT long position worth $9.65 million on Binance. The position was liquidated at $81,772.75.

Binance accounted for 51.9% of all cryptocurrency liquidations during the period.

While traders betting on rising prices suffered substantial losses, some market participants taking short positions could potentially benefit from falling prices.

Blockchain analytics account Lookonchain highlighted a trader known as AguilaTrades. The trader, reportedly carrying cumulative losses of $38 million, opened a 40x leveraged short position involving 124.24 BTC.

However, opening a short position does not automatically guarantee a profit. The final outcome depends on subsequent price movements, the entry price, trading fees, and whether the position is eventually closed at a gain or loss.

Middle East Conflict Adds Pressure to Crypto Markets

The cryptocurrency sell-off came as geopolitical tensions in the Middle East escalated.

According to a CBS report cited in the original coverage, Houthi attacks on Saudi airports had killed at least 20 people over a week, including a US national.

US President Donald Trump was also reported to have raised the possibility of the United States joining Saudi Arabia’s military offensive against the Houthis in Yemen.

Geopolitical uncertainty can prompt investors to reduce exposure to riskier assets, including cryptocurrencies. However, the conflict alone does not fully explain the market decline.

Inflation concerns also weighed on investor sentiment. US Treasury yields were reportedly near 24-year highs, making interest-bearing assets potentially more attractive than assets that do not generate direct income, such as Bitcoin and Ethereum.

Pressure extended to Asian stock markets. South Korea’s KOSPI index fell nearly 5% on Tuesday as shares of Samsung Electronics and SK Hynix declined.

Tom Lee, chairman of BitMine, an Ethereum treasury company, linked the weakness in South Korean equities to losses in the cryptocurrency market.

US CPI Data Could Determine the Next Market Move

Investors are now turning their attention to the US Consumer Price Index (CPI) report for September, scheduled for release on Wednesday.

Economists expected annual inflation to rise to 3.7%, up from 3.4% in the previous period.

A higher-than-expected inflation reading could strengthen expectations of tighter monetary policy and increase selling pressure on risk assets, including Bitcoin and Ethereum.

Conversely, a softer inflation reading could ease investor concerns and support a potential market recovery. However, price reactions will also depend on broader economic data and expectations for Federal Reserve interest rate policy.

With nearly 89% of liquidations coming from long positions, the inflation report could become an important catalyst for the market’s next move.

Traders should remain alert to volatility and carefully assess the risks associated with leveraged trading before opening new positions.

Conclusion

Ethereum recorded the largest liquidation volume at $169.23 million as the cryptocurrency market experienced a broad decline. Long traders suffered the heaviest losses amid a combination of geopolitical tensions, inflation concerns, and weakness in Asian stock markets.

The upcoming US CPI report is a key event for investors assessing the next direction of cryptocurrency prices. Nevertheless, a single economic release cannot guarantee either a market recovery or a further decline.