Long Position Liquidations Surge as Bitcoin Breaks $100,000

Over the past 24 hours, the cryptocurrency market has experienced significant volatility as Bitcoin (BTC) officially broke above the $100,000 mark.

Cryptocurrency traders faced significant losses on Thursday as Bitcoin (BTC) crossed the $100,000 mark, triggering widespread liquidations and shifting trader behavior. Within a 24-hour period, nearly $1 billion was liquidated across the market.

Analysts are now focusing on data from the Bitcoin derivatives market, which is heating up, and they are 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, accumulating $836 million in losses. This event marks the largest short liquidation since 2021.

CoinGlass noted that the actual figures might be even higher.

“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 indicates 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.

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, anticipating that Bitcoin’s price will continue to rise.

Additionally, 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.

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.