- April 6 marked the highest daily Bitcoin long liquidation this bull cycle, totaling 7,500 BTC as price fell below $80,000.
- The surge in liquidation volume began in Q1 2025, showing increased volatility despite Bitcoin hovering near its all-time high.
- Exchanges adjusted margin rules following the event, and traders reduced leverage, contributing to lower volatility in recent sessions.
The largest one-time long liquidation of the present bull cycle was recorded in the Bitcoin market on April 6, 2025, in excess of 7,500 BTC. It happened as the price dropped sharply from almost $100,000 to $79,100, evoking sweeping market responses.
Largest Long Liquidation of the Bull Run
Data from CryptoQuant revealed a record spike in long liquidations across exchanges as traders faced a rapid and steep decline. The sharp drop in price forced heavily leveraged positions to close, resulting in over 7,500 BTC being liquidated in one session.
Source: Darkfost
Such liquidation spikes often align with sudden price corrections. This event followed that pattern, indicating a quick move that caught many long-position holders unprepared. Traders using high leverage were most affected, leading to a chain of forced exits across markets.
Shifting Market Conditions in 2025
From late Q1 2025 onwards, liquidations grew significantly, although Bitcoin remained trading close to historical peaks. Such behavior indicated increased volatility and increased numbers of leveraged positions in the midst of high bullish sentiment.
The price of Bitcoin grew from $20,000 in 2023 to reach $100,000 during 2025. The yearly liquidations during this phase stayed relatively low, so leverage usage became more conservative. Market optimism during early 2025 triggered higher-risk trading activities following an optimistic period.
Compared to past periods, the frequency and size of recent liquidations indicate a more fragile structure in long positioning. Traders positioned for higher highs faced a swift correction that invalidated expectations and closed positions forcefully.
Market Reaction and Position Adjustment
After the April 6 event, Bitcoin continued trading lower near $79,100. This movement reflected a broader shift in market confidence and likely reduced the appetite for aggressive leverage.
Exchanges have begun adjusting margin requirements to reduce the risk of cascading liquidations. These measures are aimed at improving platform stability and limiting forced position closures.
With fewer leveraged positions now in play, the market may enter a phase of reduced volatility. Traders appear more cautious, focusing on managing exposure rather than chasing rapid gains. The April 6 liquidation event has reshaped near-term expectations across the Bitcoin trading landscape.
