Crypto Perpetuals See $154M Liquidated — BTC/ETH Longs Squeezed, POWER Short Squeeze
Over a 24-hour period ending 21 March 2025, perpetual futures experienced roughly $154 million in estimated forced liquidations across major contracts, driven by sharp position unwinds and funding-rate dynamics. Bitcoin led with $71.59M liquidated (69.31% longs), and Ethereum saw $64.51M (60.48% longs), indicating a wave of long-position forced closures and short-covering pressure in BTC/ETH. Emerging token POWER recorded $18.07M in liquidations, dominated by shorts (86.05%), consistent with a short-squeeze dynamic and outsized moves in low-liquidity altcoins. Earlier reports had cited higher headline figures for a similar event; reconciliation shows the later, consolidated figure (~$154M) is the current estimate. The episode highlights how perpetual futures mechanics — no expiry, funding payouts every eight hours, and high leverage (often up to 100x) — amplify liquidation risk and can trigger cascade effects. Exchanges’ risk controls (isolated margin, partial-liquidation engines, insurance funds, and auto-deleveraging) mitigate but do not eliminate systemic impact, especially for low-liquidity tokens. Traders should take this as a signal to reduce leverage, size positions with liquidation buffers, monitor funding rates and open interest as sentiment indicators, and consider hedges (options or regulated futures). This is market information, not trading advice.
Neutral
The liquidations event shows mixed directional pressure across tokens. For BTC and ETH, the majority of forced liquidations were long positions, which reflects short-term downside pressure and forced deleveraging that can cause near-term volatility and downward price moves. That suggests a short-term bearish impulse for BTC/ETH. Conversely, POWER’s heavy short liquidations (short squeeze) indicate upside momentum and a bullish signal for that token specifically. The overall $154M figure is moderate relative to historic extremes and concentrated in perpetual markets, so systemic market stability is only mildly affected; major exchanges’ risk mechanisms limit spillover. In short-term trading this event increases volatility and risks for leveraged longs in BTC/ETH and creates rapid upside spikes in low-liquidity altcoins like POWER. Over the medium to long term, unless liquidations trigger sustained funding shifts or a broad unwind of leverage and open interest, the impact is likely transitory — informing risk management rather than signaling a definitive long-term trend.