The cryptocurrency market delivered a brutal lesson to bears on March 29, 2022, as a massive short squeeze sent liquidations soaring past $441 million in a single day. Bitcoin’s relentless push above $47,000 triggered a cascade of forced closures that wiped out 84,388 traders in just 24 hours, with Ethereum bearing the brunt of the damage.
TL;DR
- Total crypto liquidations reach $441.11 million in 24 hours with 84,388 traders wiped out
- Bitcoin short liquidations hit $119 million as BTC breaks above $47,000
- Ethereum liquidations surpass BTC at $145.47 million in 24 hours
- Largest single liquidation: $10.1 million ETH trade on FTX
- Layer-1 tokens NEAR, DOT, LUNA lead recovery with over 50% monthly gains
Bitcoin Shorts Obliterated as Rally Continues
Bitcoin’s price action through March 29 was nothing short of spectacular for bulls and devastating for bears. The cryptocurrency surged past the $47,000 resistance level with conviction, triggering a wave of short liquidations that totaled $119 million over 24 hours. In just the last 12 hours of trading, BTC shorts contributed more than $14 million in liquidated positions.
The rally showed no signs of slowing as the digital asset pushed toward the $48,000 mark. Traders who had positioned themselves against the recovery trend found themselves on the wrong side of one of the most aggressive short squeezes of the quarter. The data from Coinglass painted a clear picture: betting against Bitcoin’s momentum on this day was an expensive mistake.
Ethereum Traders Take the Hardest Hit
While Bitcoin’s liquidation numbers were staggering, Ethereum traders suffered even greater losses. ETH liquidations reached $145.47 million in 24 hours, more than $20 million higher than Bitcoin’s tally. The carnage was especially concentrated in short timeframes, with $25.07 million liquidated in a single hour and $50.41 million in just four hours.
The single largest liquidation event of the day belonged to Ethereum as well. A colossal $10.10 million trade on the FTX exchange’s ETH-PERP pair was forcefully closed, highlighting the extreme leverage that traders had employed. ETH was trading around $3,400 at the time, reflecting a 14.42% gain over the previous seven days.
Layer-1 Tokens Lead the Broader Recovery
The liquidation cascade coincided with a broader market recovery that saw the total crypto market cap reclaim the $2 trillion level. Data from Delphi Digital revealed that layer-1 tokens were leading the charge, with several posting gains exceeding 50% over a 30-day period.
NEAR Protocol emerged as the standout performer, leading the L1 recovery with approximately 50% monthly gains. The rally was catalyzed by the Bastion Lockdrop event, which attracted $293 million in locked capital across NEAR, WBTC, ETH, USDT, and USDC. Polkadot (DOT) and Terra (LUNA) followed closely behind, with BNB, Solana, and Avalanche also posting significant double-digit gains.
Avalanche Shows Growing On-Chain Strength
Avalanche (AVAX) recorded a 10% weekly gain and an impressive 37% two-week gain, trading at approximately $94 on March 29. The protocol’s daily active user count has been hovering around 100,000 since Q4 2021, demonstrating sustained interest that correlates directly with price movement. Delphi Digital noted that it is rare to see sustainable price increases without corresponding growth in TVL and daily active addresses.
The launch of Avalanche’s $290 million multiverse incentive program, combined with planned integration with the Terra network, provided additional tailwinds. The upcoming implementation of subnet functionality is expected to further increase AVAX’s utility and staking demand, potentially adding fuel to the rally.
Why This Matters
The $441 million liquidation event underscores the extreme leverage embedded in crypto markets and the speed at which sentiment can shift. For traders, it serves as a reminder that shorting a market recovery can be catastrophically expensive. For investors, the breadth of the rally — spanning Bitcoin, Ethereum, and multiple layer-1 protocols — signals genuine market-wide demand rather than isolated speculation. With the total market cap back above $2 trillion and multiple catalysts lined up across different networks, the stage appears set for continued volatility in both directions.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making any investment decisions. Past performance is not indicative of future results.
84K traders wiped in 24h. the $10.1M ETH liquidation on FTX alone is brutal. imagine being that guy
ETH leverage was wild back then. $10.1M single liquidation on FTX says everything about the risk management on that platform
84k traders liquidated and FTX had the single biggest one. we know how that story ended. that $10.1M was probably customer funds being gambled
84k traders liquidated and the market just kept going. the leverage cleanse was brutal but necessary
ETH liquidations at $145M actually exceeded BTC at $119M. the leverage on ETH positions was insane during that run.
NEAR, DOT and LUNA all up 50%+ monthly. shorts were fighting the trend and got what they deserved tbh
LUNA up 50% monthly less than a month before the collapse. nobody saw it coming because the chart looked perfect. grim in hindsight
wrecked_longs that LUNA stat is haunting. 50% monthly gain while the house of cards was already wobbling. terra collapse was months away and the chart said buy
LUNA up 50% monthly and the collapse was weeks away. that chart was a trap. terra was a leveraged time bomb and the data was right there
119M in BTC short liquidations on a move to 47k. imagine levering up short into a recovery rally. some people really just donate to the market
$10.1 million single ETH liquidation on FTX. we later learned FTX was using customer funds for everything. that trade was probably alameda on the other side