On November 15, 2024, the perpetual futures market experienced a wave of forced liquidations dominated by short positions across major assets. Bitcoin recorded $43.81 million in liquidations, with 64.1% attributed to shorts; Ethereum had $40.63 million with 64.33% shorts; Solana saw $3.94 million with 52.4% shorts. These volumes represented a small fraction of total open interest: approximately 0.02% for BTC, 0.04% for ETH, and 0.03% for SOL.
Overview of Cryptocurrency Market Liquidations
Forced position closures were concentrated in perpetual contracts and showed that most affected traders held short positions. This distribution indicates many market participants bet on price declines that either did not materialize or reversed. Despite significant absolute amounts, liquidations accounted for a minor share of total open interest, suggesting limited systemic risk at this time.
Detailed Analysis of Bitcoin Liquidations
Bitcoin led in absolute liquidation amounts with $43.81 million, of which 64.1% were short positions. Most BTC liquidations were spread across several major exchanges: Binance, Bybit, and OKX accounted for about 85% of the total volume, based on historical distributions. The timing showed a sequence: initial closures occurred during the Asian session, followed by activity in the European session, with the peak during U.S. trading hours.
A similar pattern appeared in leverage usage: most liquidated Bitcoin positions operated with 10x–25x leverage. Such leverage levels cause rapid margin erosion with moderate price moves, accelerating forced liquidations even amid minor volatility.
Characteristics of Ethereum Liquidations
Ethereum recorded $40.63 million in liquidations, with short positions making up 64.33%, slightly higher than BTC. Binance dominated ETH liquidation distribution, accounting for roughly 40% of the total volume, while Bybit and OKX shared a significant portion of the remainder. This concentration creates risk clusters on the largest platforms.
For ETH, network upgrades and associated uncertainty also influenced derivatives market behavior, increasing position sensitivity to external shocks. The close link between fundamental events and derivatives amplifies liquidation risk during news-driven periods.
Solana Liquidations: Unique Aspects
Solana saw a smaller absolute liquidation volume of $3.94 million, with shorts comprising 52.4%. The short percentage for SOL was closer to parity than BTC and ETH, indicating more balanced market expectations. Despite the smaller size, Solana liquidations had a proportionate impact relative to its open interest.
Liquidation distribution across exchanges for SOL differs from larger assets: liquidity and participant profiles vary, affecting the mix and speed at which volatility impacts positions. This is important for SOL traders and holders managing risk.
Causes and Consequences of Liquidations
Forced liquidations occur when margin balances fall below exchange requirements, triggering automatic position closures to prevent negative balances. Perpetual contracts without expiry use funding rate mechanisms, and fluctuations in funding rates combined with sudden price moves often trigger cascading liquidations. High leverage and position clustering in one direction intensify this effect.
Systemic consequences include reduced short-term selling pressure as shorts close and potential short-term price rebounds. However, the liquidations represented a small share of open interest, limiting systemic shock magnitude.
Risk Management Lessons
The event underscores proven risk management principles: appropriate position sizing, prudent leverage choice, and exchange diversification reduce the likelihood of sudden forced liquidations. Monitoring funding rates and maintaining margin buffers above minimums help withstand short-term price swings. Psychological factors—herding and overconfidence—often lead to position overexposure.
Why It Matters
Even if you don’t trade derivatives, futures market behavior affects spot liquidity and short-term volatility, impacting mining profitability and coin realization opportunities. For miners with 1–1000 devices, sharp price swings can alter payout calculations in local currency or margin requirements when hedging. Understanding liquidation structure helps decide when to lock in mined income or temporarily reduce trading activity.
What To Do?
- Maintain reserves: keep part of revenue aside to cover short-term risks during trading or hedging to avoid forced sales.
- Limit leverage: use conservative leverage or avoid it entirely if unprepared for rapid margin loss.
- Diversify exchanges: spread trading and hedging across multiple platforms to reduce platform risk.
- Monitor funding rates and liquidity: regularly check funding rates and market depth to detect growing position concentration early.
- Learn protective tools: use stop orders and partial profit-taking, especially during high volatility periods.
For more practical position protection methods, see analyses of similar events and recommendations—for example, how to protect yourself after major liquidations or case studies where ETH longs lost significant sums. These materials include scenarios and steps adaptable to your operations and mining portfolio.