Over $183 million in crypto positions were liquidated across the market in a single hour, with long traders bearing the brunt of the forced closures.
Over $183 million in crypto positions were liquidated across the market in a single hour, with long traders bearing the brunt of the forced closures.
More than $183 million in cryptocurrency positions were forcibly liquidated across the derivatives market in a single hour on March 22, with long traders absorbing roughly 95% of the losses as Bitcoin slid below $69,000.
The liquidation wave hit $183 million in total forced closures within a 60-minute window, according to Coinglass data reported by PANewsLab. Long positions accounted for $174 million of that total, while short liquidations came in at just $8.83 million.
Bitcoin led the breakdown with $83.28 million in liquidations, representing roughly 45% of the total. Ethereum followed at $60.33 million, accounting for another 33%. Together, the two largest cryptocurrencies made up about 78% of all forced closures in just one hour.
The lopsided ratio, with longs making up 95% of liquidations, points to a market that was heavily skewed toward bullish leverage before the flush. Traders holding leveraged long positions were caught on the wrong side of a rapid price decline that triggered automatic margin calls across multiple exchanges.
Bitcoin was trading at $68,908 at the time of the event, down 2.45% over the previous 24 hours. While a 2.45% drop may seem modest in spot terms, it is enough to breach margin thresholds for highly leveraged positions, particularly those using 10x or higher leverage.
Cascading liquidations follow a predictable pattern. When a price drop forces the first wave of long positions to close, those forced sell orders push the price further down, breaching the next tier of margin thresholds. This creates a feedback loop where each round of liquidations accelerates the next.
The concentration of losses in long positions confirms that the derivatives market was overleveraged to the upside heading into the move. When funding rates run positive and open interest climbs without matching spot demand, the conditions are set for exactly this type of flush. The recent push above $71,000 earlier this week likely drew in late long entries that became vulnerable once the reversal began.
Daily trading volume for Bitcoin stood at $25.74 billion, elevated compared to recent averages, reflecting the spike in forced selling activity and reactive positioning that followed.
The Crypto Fear & Greed Index dropped to 10, a reading classified as “Extreme Fear.” This is one of the lowest readings recorded in recent months and signals that market sentiment has shifted sharply from the optimism that accompanied Bitcoin’s move toward $71,000.
Liquidation events of this scale typically reduce open interest significantly, which can paradoxically stabilize the market. When overleveraged positions are flushed out, the remaining open interest represents better-capitalized traders with wider stop levels, reducing the probability of another immediate cascade.
However, the extreme fear reading suggests that risk appetite has not yet recovered. The broader macro backdrop has added pressure, with spot crypto ETFs posting $92.1 million in net outflows on March 20, indicating institutional investors were already pulling back before the liquidation spike.
For traders watching the derivatives market, the key question is whether the flush cleared enough leverage to form a local bottom, or whether additional long positions remain vulnerable at lower price levels. If Bitcoin breaks below $68,000, a second wave of liquidations could follow as the next cluster of stop-losses and margin levels would come into play.
The broader regulatory environment has offered some positive signals recently, but near-term price action in the derivatives market will likely be driven by positioning data and leverage ratios rather than fundamental catalysts. Traders monitoring Coinglass open interest data and funding rates in the hours ahead will have the clearest read on whether the worst of this particular flush is over.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
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