Red Dawn: $1 Billion in Crypto Liquidations Amid Asian Market Rout

Red Dawn: $1 Billion in Crypto Liquidations Amid Asian Market RoutA wave of panic selling rocked global markets in the early hours of Monday, as over $1 billion in crypto positions were liquidated, triggered by a steep sell-off across major Asian equity markets.

Bitcoin, Ethereum, and other leading cryptocurrencies tumbled in tandem with regional stock exchanges, with Japan’s Nikkei, South Korea’s KOSPI, and Hong Kong’s Hang Seng all opening deep in the red. The sharp decline fueled a cascading effect across leveraged crypto positions, resulting in one of the largest liquidation events of the quarter.

According to data from Coinglass, over $1.03 billion worth of long positions were wiped out in the past 24 hours, as Bitcoin dropped below key support levels and Ethereum followed suit. Altcoins suffered even more, with double-digit losses seen across meme tokens and smaller-cap assets.

The rout appears to be driven by a confluence of macroeconomic fears, including hawkish signals from the U.S. Federal Reserve, weak Chinese economic data, and escalating geopolitical tensions in the Asia-Pacific region. Traders rushed to de-risk, triggering a domino effect across crypto exchanges that intensified the liquidations.

“Asia woke up to a nightmare, and crypto traders paid the price,” said one analyst. “The correlation between global equities and digital assets is back in full force.”

The sharp move also reignited concerns about market overleverage, particularly in perpetual futures markets. Some exchanges reported brief downtime as liquidations surged in volume.

While some are calling it a temporary correction, others warn this could be the start of a larger risk-off environment — especially if traditional markets continue to falter.

For now, the message is clear: the crypto market remains tightly tethered to global sentiment — and when Asia bleeds, crypto follows.