$149M Liquidated in One Hour as BTC/ETH Futures Crash Sparks $303M 24h Sell-Off
Major derivatives exchanges forcibly liquidated $149 million of leveraged futures positions within one hour on March 21, 2025, and about $303 million over 24 hours. Data from Binance, Bybit and OKX show longs accounted for roughly $98 million of the hourly total and shorts about $51 million, indicating a rapid price decline and a long squeeze. Bitcoin and Ethereum futures comprised nearly 70% of the liquidations. The 24-hour window coincided with a roughly 5.2% drop in BTC from about $72,500 to $68,800. The event forced funding rates deeply negative, reflecting bearish sentiment and removing excessive leverage—conditions that can both amplify downside and create short-term rebound opportunities as positions unwind. Analysts said the cluster tested exchange risk engines and liquidity; exchanges may adjust margin rules, funding rates, and risk settings in response. For traders, the episode highlights key risks: high leverage (often >25x) strongly increases liquidation probability, long-heavy liquidations signal swift downward pressure, and funding-rate swings can indicate short-term sentiment and re-entry or hedging opportunities. Recommended actions: reduce leverage, increase margin buffers, use disciplined stop-losses, monitor liquidation and funding-flow trackers, and prepare for elevated volatility and potential price discovery once systemic leverage falls.
Bearish
The forced liquidation cluster and accompanying price move point to a short-term bearish impact on BTC and ETH. A long-heavy liquidation—$98M of $149M hourly—means the price decline was driven by long squeezes that removed large, leveraged long exposure, causing immediate downside pressure. Funding rates turned deeply negative, signaling heightened bearish sentiment and incentivising further short positions, which can sustain downward momentum in the near term. Exchanges may tighten margin and risk settings, further reducing liquidity and amplifying volatility. However, the event also reduces systemic leverage, which often precedes a period of price discovery or rebound once forced positions are cleared and funding rates normalize. For traders: expect elevated short-term downside risk, wider spreads and funding-rate-driven flows; medium-term outlook becomes more neutral to constructive only after leverage is flushed and liquidity normalizes. Overall, immediate price impact is bearish, while later stabilization or rebound is possible as deleveraging completes.