Bitcoin Crash Triggers $400 Million in Leveraged Crypto Liquidations

Bitcoin’s recent slide wiped out over $400 million in leveraged crypto longs in just one hour, as the price dropped to around $83,800. This liquidation wave accounted for approximately 0.27% of the total open interest in futures contracts. Long positions, which involve betting on price increases, made up 97% of the $415.33 million in liquidations, indicating a one-sided market flush.

The majority of the liquidations occurred in a single burst, with 98% of the $412.99 million in four-hour long liquidations happening within the final hour. Over 24 hours, long positions accounted for $487.02 million of the total $554.76 million in liquidations. This event, while significant, was still dwarfed by the 10th-largest liquidation event on record, which reached $2.77 billion.

Ethereum longs accounted for $155.12 million in liquidations, surpassing Bitcoin’s $115.73 million. This discrepancy may reflect sharper losses in Ethereum, heavier leverage, or both. As of the latest data, open interest stood at $150.24 billion, down 2.45%, which could be partially attributed to falling prices.

Commentators on X had differing opinions on the significance of the event. Some argued that the rapid liquidation suggested positioning was a key factor, while others viewed it as a natural part of the market cycle, flushing out over-leveraged positions and setting the stage for a rebound. The data supports both perspectives, with the one-sided nature of the liquidations fitting a positioning flush, while the remaining open interest indicates that most leverage is still outstanding.