Over the past 24 hours, the cryptocurrency market has experienced significant volatility as Bitcoin (BTC) officially broke above the $100,000 mark. This price movement triggered massive liquidations, totaling nearly $1 billion across the market, and led to a shift in trader behavior.
Additionally, data from the Bitcoin derivatives market is heating up. Analysts are now concerned about the potential for even larger liquidation waves.
Long Position Liquidations Surge as Bitcoin Breaks $100,000
According to data from CoinGlass, around 190,000 traders were liquidated, with total losses reaching $970 million. Short positions were hit the hardest, accounting for $836 million in losses. This event marks the largest short liquidation since 2021. CoinGlass also noted that the actual numbers might be even higher.
Total Liquidation in Crypto Market. Source: CoinGlass.
“This is the largest short liquidation since 2021… Binance has not fully disclosed its liquidation data, and the actual data is more,” CoinGlass stated.
Although short positions have been wiped out, the market faces a new risk: a sharp rise in long positions.
CoinGlass’s 24-hour Bitcoin liquidation map shows that if Bitcoin drops below $100,000, total long positions across exchanges could face nearly $2 billion in liquidations. This raises concerns about a potential “long squeeze”—a phenomenon where mass liquidation of long positions triggers panic selling and accelerates a price drop.
Bitcoin Exchange Liquidation Map. Source: CoinGlass.
The same map also shows that if Bitcoin falls below $98,000, total liquidation volume could reach as high as $3.45 billion.
This overwhelming potential liquidation from long positions signals a shift in trader sentiment. Many are betting more money and using higher leverage, expecting Bitcoin’s price to continue rising.
In addition, data from CoinGlass shows that Bitcoin Futures Open Interest (OI) across exchanges has reached a record $67.4 billion. This reflects a surge in demand for short-term leveraged trading. Traders are making large bets on the uptrend, which increases the risk if the market suddenly reverses.
Exchange BTC Futures Open Interest. Source: CoinGlass.
Historically, every time Bitcoin’s OI has surpassed $65 billion, a market correction has followed shortly after.
Bitcoin is now making headlines not just for surpassing $100,000, but also for its rising influence in global finance. At one point, Bitcoin even surpassed Amazon to become the fifth-largest asset in the world, with a market capitalization of $2.05 trillion. Meanwhile, Standard Chartered predicts Bitcoin could soon break its all-time high and reach $120,000 in Q2.
