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Analysis: Massive liquidation of bitcoin leveraged positions can be seen as a natural reset of the market, a key stage in maintaining the continuation of the bull market

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2025-03-18 03:50:37
CryptoQuant contributor DarkFost said in the March 17 market report: "On January 17, the volume of unpositioned squaring contracts in Bitcoin reached an all-time high above $33 billion, indicating that the level of leverage in the market has never been higher. Recently, we have witnessed a massive liquidation of leveraged positions in Bitcoin due to the panic caused by political instability related to Trump's decision-making. In just two months, more than $10 billion of unpositioned squaring contracts were wiped out, of which about $10 billion was liquidated between February 20 and March 4 alone. This can be seen as a natural reset of the market and is a key stage in maintaining the continuation of the bull market. Currently, the 90-day change in unpositioned squaring contracts for bitcoin futures has fallen sharply and is currently -14%. Looking back at historical trends, every similar deleveraging in the past has provided good opportunities for the short to medium term. "
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