Data shows that the cryptocurrency derivatives market has experienced a huge number of liquidations following the Bitcoin crash in the last 24 hours.

Bitcoin has shown significant volatility over the past day

BTC has shown wild price action over the past day, with both the high of $103,500 and the low of $90,500 occurring within a tight window. The transition to this last level in particular was so abrupt that it could only be described as a flash crash.

Below is a chart showing the recent trajectory of this stock.

From the chart, you can see that the acute red candle only lasted for a miniature time as the cryptocurrency quickly bounced back to higher levels. Following the recovery, the coin is trading at around $98,000, which means it is still down around 5% from its peak.

As usual, other leading digital assets also followed BTC’s lead in this bearish price action, but the likes of Ethereum (ETH) and Solana (SOL) proved more resilient as their prices fell by just 2% over the last day.

The recent market-wide volatility means chaos has reigned supreme on the derivatives side of the cryptocurrency sector.

Long positions in cryptocurrencies just experienced a liquidation crash

According to data from CoinGlassThe cryptocurrency derivatives market has experienced multiple liquidations as assets across the sector have experienced rapid price movements.

As shown in the table above, as much as $893 million worth of cryptocurrency derivatives positions have been liquidated in the last 24 hours. A contract is said to be “liquidated” when an exchange forcibly closes it after it has incurred certain losses.

Nearly $733 million of these liquidations were in long contracts, representing 82% of the total. This rapid dominance of long positions is naturally the result of the net bear market that Bitcoin and other markets have gone through.

Massive liquidation such as this latest one is popularly known as the “squeeze”. Since longs make up the majority of this squeeze, it could be called a long squeeze.

The long squeeze that the derivatives sector has just experienced could perhaps have been an obvious conclusion from the warm market conditions that were developing in the period leading up to its introduction. As CryptoQuant community analyst Maartunn noted in X’s report postOpen Interest has increased as Bitcoin has grown.

Generally speaking, whenever derivatives positions explode during a rally, it means that the rally is due to leverage. Price movements of this type may be volatile.

Open interest increased by over 15% during the last Bitcoin session, which is considered a very significant amount. When the price changed direction, all leveraged long positions were taken down, which only provided fuel for the crash, explaining its particularly acute nature.