- More than 182,000 crypto traders were liquidated on January 20, 2026, as total losses exceeded $1.08 billion, mostly from long positions.
- Bitcoin and Ethereum led forced liquidations while technical signals show persistent selling and market stress, with most altcoins’ RSI levels below 50.
- Rising Japanese bond yields and anticipated regulatory moves at Davos threaten global liquidity, adding downside pressure to crypto markets.
On January 20, 2026, the cryptocurrency market experienced a sharp deleveraging event. More than 182,000 traders had their positions forced closed, totaling over $1.08 billion in liquidations. Long positions accounted for nearly all the losses as Bitcoin and Ethereum futures traders were hit by cascading margin calls.
Traders are now confronting higher leverage amid intensifying global macroeconomic pressures and technical weakness across digital assets.
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Record Liquidations Hammer Leveraged Traders
According to CoinGlass data, 182,729 traders were liquidated over the 24-hour period ending January 20, with combined losses totaling $1.08 billion. Most were long positions, totaling $1.08 billion, while short liquidations were far lower at $79.67 million.
Bitcoin saw $427.06 million in liquidated longs, with Ethereum following at $374.47 million. The largest single liquidation on Bitget involved a BTCUSDT_UMCBL position valued at $13.52 million. Major exchanges reported significant losses: Hyperliquid had $132.39 million in long liquidations, Bybit $91.35 million, and Binance $64.08 million over a four-hour period.
Liquidation occurs when an exchange closes a trader’s leveraged position because the margin is insufficient to cover losses. As prices move against highly leveraged positions, exchanges automatically sell collateral, resulting in a cascade as each liquidation pushes prices lower and triggers further margin calls.
High-profile traders were hit hard. Machi Big Brother, a well-known investor, suffered five liquidations in a single day. His total losses reached $24.18 million, and his remaining 2,200 ETH, valued at $6.67 million, faces further risk if Ethereum drops to $2,991.43.
Technical Weakness and Market Stress Signals
Several market indicators showed clear stress beyond falling prices. Technical analysis found that most altcoins are trading with a daily Relative Strength Index (RSI) below 50, a signal of ongoing selling pressure. The RSI ranges from 0 to 100; values below 50 indicate bearish sentiment.
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The liquidations-to-open-interest ratio over the past 24 hours remained high across much of the market, indicating clear deleveraging. This ratio, which measures the share of open positions liquidated, spikes during periods of stress and forced selling.
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