Rich by Coin

Global cryptocurrency markets experienced a severe volatility shock on March 21, 2025, as major derivatives exchanges forcibly closed $149 million worth of leveraged futures positions within a single hour. This intense liquidation event, part of a broader $303 million purge over 24 hours, highlights the persistent risks within crypto’s high-stakes trading ecosystem and immediately impacted Bitcoin, Ethereum, and other major digital assets. Data aggregated from leading exchanges like Binance, Bybit, and OKX reveals a concentrated wave of forced position closures. The $149 million figure represents not just lost capital for individual traders but also significant selling or buying pressure that exacerbates price swings.

For instance, long positions—bets on price increases—accounted for approximately $98 million of the hourly total. Conversely, short positions accounted for roughly $51 million. Bitcoin (BTC) and Ethereum (ETH) futures dominated the liquidation tally, comprising nearly 70% of the total value. Traders borrow capital (leverage) to amplify potential gains.

The one-hour spike did not occur in isolation. The preceding 24-hour period witnessed total liquidations reaching $303 million. This broader context indicates sustained market stress rather than a single flash crash. Notably, the liquidation wave coincided with a 5.2% drop in Bitcoin’s price over the same 24-hour window, falling from approximately $72,500 to $68,800.

Dr. Lena Chen, a financial derivatives professor at the Singapore Institute of Technology, explains the systemic implications. “Such liquidation clusters are stress tests for exchange risk engines and market liquidity,” she states. “While $149 million is substantial, the market absorbed it without a catastrophic failure, demonstrating improved infrastructure since 2021,” Chen adds, noting that the high proportion of long liquidations signals a classic long squeeze. Marcus Thorne, a risk management consultant for crypto funds, highlights behavioral factors and points to data showing leverage ratios often exceeding 25x for affected retail accounts.