We estimate that the BTC futures and perp markets saw a total of $854 million worth of long liquidations on Friday as bitcoin plunged below $40,000 down towards $35,000. For reference, the last time bitcoin fell below $40,000 from the upside on May 19th, 2021, a total of $4.8bn worth of longs got liquidated in the BTC market.
Back then, the sell-off was far more intense than what we’ve seen this time around. Bitcoin fell from $58,000 to $29,000 over the course of seven days. Now, traders have had more time to re-allocate and add collateral to underwater trades, possibly explaining the less intense long liquidation volumes witnessed in the market.