“According to 10x Research, significant liquidations occurred as some traders anticipated a price correction, while others succumbed to the fear of missing out (FOMO) on Bitcoin’s ongoing rally.”

In the past 24 hours, leveraged trades worth over $361 million have been liquidated as Bitcoin (BTC) reached a new all-time high of $73,050, only to drop below $70,000 on March 12.

The liquidations predominantly affected long positions, amounting to $258 million, while short sellers lost slightly over $103 million, as reported by data from the crypto trading and information platform Coinglass.

This recent liquidation marks the largest flush-out of long positions since March 5, when Bitcoin experienced a similar scenario, dropping to $60,800 after hitting its previous all-time high of around $69,000. Despite this volatility, Bitcoin’s price fluctuated by only 4.85% between its low of $69,365 and its high of $72,733 on March 12, according to CoinGecko.

At the time of writing, Bitcoin has stabilized at around $71,400. A spokesperson from 10x Research explained to the sources that the surge in volatility could be attributed to traders anticipating a price correction, while simultaneously experiencing a strong fear of missing out (FOMO), which might indicate that the rally will persist.

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10x Research also observed a 5% increase in futures open interest over the weekend of March 9 and 10, speculating that these positions were established with tight stop-loss orders.

Additionally, Bitcoin and Ether (ETH) trades contributed the most to liquidations over the past 24 hours, totaling $106.3 million and $73.3 million, respectively. Other cryptocurrencies such as Solana (SOL), Dogecoin (DOGE), and the Bitcoin-based memecoin Ordi (ORDI) also experienced significant liquidations.

Among exchanges, OKX witnessed the highest total of liquidations, amounting to $152 million, followed by Binance with combined losses of $128.4 million.

According to research firm S3 Partners, short sellers suffered losses exceeding $6 billion while betting against publicly traded crypto firms during the first 11 months of 2023, as Bitcoin surged by 130% to $37,800 over the same period.