Bitcoin Liquidation Surge: 96.7% of Crypto Liquidations Hit Long Positions

The crypto liquidation landscape just shifted dramatically. Yesterday’s trading session revealed a striking imbalance in futures market liquidations, with long position liquidations accounting for 96.7% of all forced closeouts in Bitcoin futures. This figure underscores the vulnerability of bullish traders caught on the wrong side of a price correction. The 30-day moving average for long liquidations climbed to 31.4%, painting a clear picture of sustained selling pressure targeting leveraged bulls.

Long Positions Drive the Liquidation Wave

What makes these crypto liquidation figures particularly noteworthy is their concentration among long traders. Nearly every forced liquidation in the market originated from positions betting on higher prices, revealing how unprepared many traders were for the recent downturn. This isn’t just a one-day phenomenon—the moving average indicates a consistent pattern of long positions unwinding over the past month. The disparity between long (96.7%) and short liquidations suggests asymmetric risk exposure across the derivatives market, with significantly more capital locked in bullish bets than bearish ones.

Funding Rate Tells a Different Story

Despite the wave of forced liquidations, Bitcoin perpetual contracts maintained a notably bullish funding rate environment. Yesterday’s annualized funding rate stood at 43.2%, remaining firmly in positive territory. This seemingly contradictory signal—massive long liquidations combined with stubbornly positive funding rates—reveals that the derivatives market has not yet capitulated. A positive funding rate means traders with long positions are still paying shorts to maintain their exposure, suggesting underlying demand for longs despite recent forced closures. The market appears to be transitioning rather than reversing.

What This Means for Crypto Traders

The persistence of positive funding rates amid widespread crypto liquidations sends a mixed signal to the broader market. While short-term volatility has flushed out overleveraged bulls, the funding rate structure indicates long-term conviction remains intact. Traders should monitor whether these liquidations mark a local bottom or signal deeper weakness ahead. The answer likely depends on whether funding rates eventually turn negative—a sign that the market has truly shifted bearish—or if they stabilize, suggesting the current shake-out is merely a healthy rebalancing in the perpetual futures market.