Long positions bore the heaviest losses, with $586 million eliminated according to CoinGlass data. Bitcoin accounted for $140 million in liquidations as the flagship cryptocurrency dropped 2.63% to $115,356, while Ethereum contributed $105 million in forced closures with a 1.33% decline to $3,598. Dogecoin led major cryptocurrency losses, plunging 7% to $0.22 and generating $26 million in liquidated positions.

The sharp reversal caught traders off-guard following weeks of bullish momentum that saw Bitcoin reach new all-time highs of $123,100 on July 14. Many market participants had positioned for continued upside, making Friday’s correction particularly painful for overleveraged positions across the spectrum.

Despite the brutal deleveraging event, market sentiment indicators suggest underlying confidence remains intact. The Crypto Fear & Greed Index maintained a “Greed” reading of 70 in Friday’s update, signaling that investors view the pullback as a temporary correction rather than a fundamental shift in market dynamics.

Traders will be monitoring whether Bitcoin can hold key support levels and if institutional demand returns following this violent shake-out of speculative positions.