Bitcoin Traders Face 99.29% Long Liquidations Amid March Volatility

In March 2025, the cryptocurrency market witnessed a significant event as Bitcoin (BTC) traders faced a substantial long squeeze. Data from a crypto lending analytics platform revealed that Bitfinex experienced a wave of liquidations this month, with long positions bearing the brunt of the impact. Out of the total 4,226.8 BTC liquidated, 4,196.9 were related to long positions, amounting to a staggering 99.29%. This event highlights the intense market sentiment and the challenges faced by traders who had leveraged their positions.

Liquidations occur when the market moves against traders who have made leveraged trades, rendering their collateral insufficient and forcing the closing of their positions. This phenomenon is a natural extension of the broader cryptocurrency market bloodbath observed in 2025. Despite showing resilience in the $80,000 to $83,000 range, Bitcoin's support levels appear underwhelming given multiple dips, including one toward $77,000 on March 10. The current price range, while impressive compared to historical levels, is bearish considering Bitcoin hit its all-time highs above $109,000 as recently as January.

Over the last 30 days, Bitcoin dropped 13.41% to its press time price of $82,596, with March contributing a more modest 3.5% to the decline. The month was marked by substantial volatility, with highs above $94,000 and lows near $77,000. This volatility led to a significant number of long positions being liquidated as traders struggled to maintain their leveraged bets in a rapidly changing market.

Despite hopes that Bitcoin’s bullish cycle is not over, the coin has been forming a pattern similar to the summer of 2024. Between June and November of that year, BTC was on a slow downtrend, continuously finding lower lows followed by lower highs. During this period, it managed to maintain a somewhat stable level near $60,000. This trajectory was abruptly reversed with Donald Trump’s November re-election. At press time, no comparable events are scheduled for the future, making it difficult to speculate on the ending of the current turmoil if Bitcoin’s performance truly mirrors the previous summer.

Previous analysis, regulatory developments, institutional adoption, and historical halving cycles have left many investors optimistic that a breakout to a new high will occur in 2025. The market's sentiment remains a mix of caution and optimism, with traders closely monitoring developments and adjusting their strategies accordingly. The long squeeze in March serves as a reminder of the risks associated with leveraged trading in volatile markets, where sudden price movements can lead to margin calls and forced liquidations.