Crypto Bloodbath: Bitcoin Liquidations Top $724M as Market Faces Macro Uncertainty
Bitcoin experienced a dramatic price drop on Thursday, falling from $115,000 to as low as $107,500 in a swift correction triggered primarily by aggressive short selling in the perpetual futures market. The sell-off was intensified by macroeconomic fears, geopolitical tensions, and a cascade of liquidations, which wiped out over $724 million in trader positions.
Sharp Spike in Open Interest Signals Bearish Sentiment
According to data from Velo, open interest surged 2.3% in the 90 minutes leading up to the initial drop, adding $591 million in notional value. The cumulative volume delta (CVD) for offshore derivatives exchanges such as Binance and Bybit turned negative, suggesting that short sellers dominated during this phase. Spot CVD, however, remained relatively flat, reinforcing the idea that derivatives—not spot markets—drove the decline.
As Bitcoin plunged further to $107,500, open interest spiked an additional 4%, tacking on another $1.03 billion in exposure as both short sellers and spot participants contributed to the selling pressure.
Bulls Crushed by Liquidations, But Spot Buyers Show Resilience
The selloff led to the liquidation of $724 million in positions, with longs accounting for $536 million, highlighting how overleveraged bullish traders were caught off guard.
Despite the turmoil, Coinbase’s spot CVD remained “mostly positive,” signaling buy-the-dip activity among U.S. spot investors. CoinGlass data also pointed to a rising bid-ask delta, suggesting that spot buyers were actively absorbing the selling pressure from shorts.
Julio Moreno of CryptoQuant emphasized that spot demand remains weak, and “short traders are dominating.” Bitget’s Ryan Lee cited a mix of macroeconomic uncertainty and liquidation spikes as key drivers, while Aragon CEO Anthony Leutenegger warned that markets may need “time to rebalance” after such a steep correction.
Despite some optimism from spot buyers, analysts remain cautious. Moreno concludes that the “odds of a rally are tilted to the downside” as volatility continues to shake the market.
