Bitcoin Updates: Investor’s $33M ETH Wager Withstands $1.1B Liquidation Surge While Crypto Markets Approach Bearish Levels

Last week, the cryptocurrency market saw a sharp turnaround as a well-known trader—famous for successfully navigating previous market lows in

(BTC) and (ETH)—closed out a $7.3 million position, only to jump back in with a $33 million long bet on . This dramatic move played out against a backdrop of widespread market volatility, as , representing the largest wave of forced selling since the FTX collapse in 2022.

This liquidation spree hit long positions especially hard, erasing $973 million, while short liquidations totaled $131.37 million.

—underscored the high leverage many traders had taken on during the recent rally. Hyperliquid and Bybit also saw major outflows, with respectively, within just four hours. Experts point to excessive leverage and a sudden shift in market mood as key reasons for the sharp downturn, which caught many market participants by surprise.

The current market turmoil has drawn direct parallels to the FTX crisis.

, a situation not seen since the 2022 meltdown. On top of that, Bitcoin has , indicating significant market stress. seen during the FTX collapse, highlighting the psychological impact on traders.

, with more than 246,000 traders forced out of their positions. This has reignited discussions about whether the market is entering a new bear cycle or simply undergoing a sharp correction. Although the $1.1 billion in liquidations is significant, it is still much less than the all-time high of $19.16 billion in October 2025, which followed a US-China tariff announcement . Even so, the recent events have brought renewed attention to the risks of leveraged trading and the effectiveness of risk controls on exchanges.

The trader's choice to re-enter with a $33 million ETH long position signals a belief in a short-term recovery. Moves like this illustrate the cyclical behavior of crypto markets, where rapid liquidations can open the door for new buying opportunities for well-capitalized players. Still, with technical signals warning of caution and retail investor sentiment at multi-year lows, the outlook remains highly uncertain

.