Bitcoin Drop Triggers Over $400 Million in Leveraged Long Liquidations

Derivatives exchanges liquidated $403.58 million in bullish leveraged crypto positions within a single hour as Bitcoin fell to roughly $83,800. Long positions accounted for 97% of the $415.33 million liquidated during that window, illustrating an aggressive, one-sided positioning flush that nonetheless represented only about 0.27% of total market open interest.

Data from tracker CoinGlass shows the unwinding was heavily concentrated, with 98% of four-hour long liquidations occurring in the final hour. Across the full 24-hour period, long liquidations reached $487.02 million out of $554.76 million in total market wipeouts. Ethereum saw higher nominal long liquidations than Bitcoin, registering $155.12 million compared to Bitcoin's $115.73 million, which may point to higher leverage or steeper price declines in the asset.

Aggregate open interest dropped 2.45% to $150.24 billion, a decline partly explained by falling spot prices given the dollar denomination of the contracts. While commentators noted that the rapid cascade shows how forced sales of levered positions can amplify regular price dips, the resilient open interest total suggests a substantial volume of leverage remains active across the market.