- Bitcoin (BTC) experienced a 638% surge in liquidations within an hour as leveraged longs got wiped out.
- 11.38MinBTCpositionsliquidated∗∗—∗∗11.38MinBTCpositionsliquidated∗∗—∗∗9.84M from longs vs. just $1.54M from shorts, revealing extreme bullish overextension.
- Total crypto liquidations hit $465.5M in 24 hours, with BTC leading market volatility.
- Macroeconomic uncertainty (trade war fears, U.S. inflation data) triggered the sell-off.
Bitcoin Liquidation Frenzy Stuns Traders
Bitcoin’s price action took a dramatic turn as an abnormal liquidation imbalance caught over-leveraged bulls off guard. Data from CoinGlass revealed:
- $26.1M in positions liquidated in just one hour, mostly long bets.
- Largest single liquidation: A $3.33M BTC/USDT trade on Bybit, highlighting excessive risk-taking.
- Altcoins (XRP, DOGE, SOL) also fell, but BTC remained the primary volatility driver.
Why Did This Happen?
- Macroeconomic Hangover
- Early optimism over the 90-day tariff pause faded as U.S. markets pulled back.
- Traders reassessed risks amid potential recession fears.
- Over-Leveraged Long Positions
- The 638% liquidation spike exposed extreme bullish bias in derivatives markets.
- Many traders were caught offside when sentiment shifted suddenly.
- Mixed U.S. Inflation Data
- CPI dropped 0.1% in March, but traders remain wary of Fed policy shifts if trade tensions escalate.
What’s Next for Bitcoin?
- Short-term: Volatility may persist as traders digest macroeconomic risks.
- Long-term: If trade war fears grow, BTC could see increased safe-haven demand—or further liquidations if leverage remains high.
Expert Insight:
“This liquidation spike shows how quickly sentiment can flip in crypto markets. Traders got too comfortable with longs and paid the price when macro conditions shifted.”
Stay updated on Bitcoin price movements and liquidation trends as market uncertainty continues.
