Crypto Liquidations Decline by 76% in March
The second half of March witnessed a significant decline of around 76% in crypto liquidations as Bitcoin’s price action stabilized near the $87,000 mark following heightened volatility earlier in the month.
Comparison of Liquidations
- Between March 12 and March 25, long liquidations totaled $1.26 billion, while short liquidations amounted to $1.14 billion.
- During this period, there were $7.2 billion in long liquidations and $2.8 billion in short liquidations between February 24 and March 12.
Bitcoin Price Movement
Bitcoin’s price opened at $82,857 on March 12 and closed at $87,330 by March 25, trading within a narrower band compared to the previous two weeks.
Market Participation and Leverage Risk
As open interest remained elevated across futures markets, the decline in liquidations suggests more measured market participation and reduced leverage risk among traders.
Impact of Reduced Leverage
Reduced leverage has a stabilizing effect on volatility, leading to less pronounced price swings without leverage amplifying moves.
