Crypto Markets Experience $294.7M Short Squeeze Triggered by Liquidations
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 06 2026- Increased Market Volatility: On March 21, 2025, the cryptocurrency market experienced forced liquidations totaling $294.7 million within a 24-hour period, predominantly impacting short sellers, highlighting the high risks and volatility inherent in the derivatives market.
- Bitcoin Dominates Losses: Bitcoin accounted for $186 million of the liquidations, representing 63.1% of the total, indicating that market expectations were overly pessimistic regarding Bitcoin's price rise, leading to a significant number of forced short position closures.
- Ethereum and XRP Affected: Ethereum saw $78.27 million in liquidations, with 74.91% from short positions, while XRP faced $30.44 million in liquidations, illustrating a widespread bearish sentiment towards major cryptocurrencies.
- Importance of Risk Management: This event underscores the risks associated with high leverage trading, prompting traders to reassess their risk management strategies, particularly in a rapidly fluctuating market environment, ensuring the use of stop-loss orders and lower leverage ratios to safeguard capital.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
