Bitcoin (BTC) experienced two sharp downturns within just three days — first plunging over 7% on the 15th of the month, then dropping another 6% on the 17th, breaking below the $65,000 mark. The rapid sell-off triggered massive liquidations across the crypto market, with nearly 180,000 traders forcibly exited from their leveraged positions in just 24 hours. Analysts point to profit-taking and elevated leverage as key drivers, while exchange executives argue this correction may actually strengthen long-term market health.
Why Did Bitcoin Crash Twice in Early March?
On March 15, Bitcoin dipped to $67,593.62 amid growing macroeconomic concerns. A primary catalyst was hotter-than-expected inflation data, which reignited fears of prolonged high interest rates. This economic backdrop pressured risk assets across the board, including cryptocurrencies.
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At the same time, crypto markets had been showing signs of overheating. Leverage levels on derivatives platforms surged as traders piled into bullish positions, expecting continued upward momentum. When prices reversed, these highly leveraged positions became vulnerable — triggering cascading liquidations that accelerated the decline.
Just two days later, on March 17, Bitcoin fell again, this time dropping to $64,553.65. While no single event caused the second leg down, the combination of profit-taking by short-term holders and lingering macro uncertainty created a perfect storm for another wave of selling pressure.
Core Keywords:
- Bitcoin price crash
- Crypto liquidation
- Market volatility
- Leverage in crypto
- Profit-taking
- Inflation impact on Bitcoin
- ETF sentiment
- Mining reward halving
Massive Liquidations: Over $500 Million Wiped Out in 24 Hours
According to data from CoinGlass, approximately 177,000 traders were liquidated within a 24-hour window following the dual price drops. The total value of forced exits reached $514 million, with Bitcoin and Ethereum (ETH) accounting for the majority of losses.
This level of liquidation highlights the fragility of highly leveraged trading strategies during sudden market corrections. When Bitcoin’s price moves sharply against open positions — especially those using 10x, 25x, or even higher leverage — exchanges automatically close those trades to prevent negative balances. These forced closures often occur at the worst possible moment for investors.
Such events are not uncommon during volatile periods. However, the scale of recent liquidations underscores how tightly wound trader sentiment had become after Bitcoin’s strong rally earlier in the year.
Could Bitcoin Drop Below $63,000?
Some analysts warn of further downside risk if institutional demand fails to pick up. BLOCK TEMPO, a cryptocurrency insights platform, suggests that if spot Bitcoin ETF inflows remain weaker than anticipated, downward pressure could push prices below $63,000.
ETF sentiment has become a critical factor in Bitcoin’s price action since the U.S. Securities and Exchange Commission approved several spot Bitcoin ETFs in January 2024. While initial enthusiasm drove significant capital inflows, recent weeks have seen more muted activity — raising concerns about fading retail and institutional appetite.
Adrian Wang, founder of Metalpha, notes that the market is currently in an adjustment phase ahead of the upcoming Bitcoin mining reward halving, expected in April 2025. During this event, the block reward for miners will be cut in half — reducing new supply entering the market. Historically, such events have preceded major bull runs, but the lead-up often involves consolidation and increased volatility.
Exchange CEO: This Is a Healthy Correction
Kris Marszalek, CEO of Crypto.com, downplayed fears of a broader market collapse. In a recent interview, he compared the current situation to what happened between December 2020 and January 2021, when Bitcoin rose above $40,000 before pulling back to around $30,000 — only to surge past $57,000 by February.
“These pullbacks are not only normal — they’re necessary,” Marszalek said. “They help reduce systemic leverage and cleanse overextended positions.”
He views the recent price swings as a healthy market correction rather than a sign of weakness. By forcing out speculative and over-leveraged traders, such movements can improve overall market resilience ahead of potential future rallies.
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Rising Public Interest Signals Growing Market Attention
Despite the turbulence, public interest in Bitcoin is surging. According to Bloomberg, Google Trends data shows that global search volume for “Bitcoin” hit a one-year high in early March. In fact, over a seven-day period, searches for Bitcoin surpassed the combined search interest for global superstars Taylor Swift and Beyoncé.
This spike in curiosity often precedes increased retail participation. When mainstream attention grows, new investors enter the market — sometimes fueling further rallies once volatility subsides.
However, it also raises risks if newcomers lack understanding of leverage and risk management. Many of those caught in recent liquidations likely used margin trading without fully grasping the dangers involved.
What Is a Forced Liquidation?
Forced liquidation occurs in futures and leveraged trading markets when a trader’s position moves so far against them that their collateral falls below the required maintenance margin.
For example:
- A trader opens a $100,000 long position on Bitcoin with 10x leverage (using $10,000 as collateral).
- If Bitcoin’s price drops sharply — say 8–10% — the equity in their account may fall below exchange requirements.
- The exchange then automatically closes the position to prevent further losses.
- This process is known as liquidation, and it results in the complete loss of the trader’s initial margin.
In fast-moving markets like crypto, where prices can swing dramatically in minutes, liquidations can happen extremely quickly — especially during news-driven sell-offs or flash crashes.
Frequently Asked Questions (FAQ)
Q: Why did Bitcoin drop twice in three days?
A: The back-to-back declines were driven by hotter inflation data, profit-taking after a strong rally, and excessive leverage in the futures market. These factors combined to trigger widespread selling pressure.
Q: How many people were liquidated during the crash?
A: Approximately 177,000 traders were forcibly liquidated within 24 hours, with total losses exceeding $514 million.
Q: Is this crash a sign of a bear market?
A: Not necessarily. Market experts view this as a healthy correction that reduces leverage and resets overbought conditions — potentially setting the stage for future growth.
Q: Can Bitcoin recover from here?
A: Yes. Historical patterns show that sharp pullbacks often precede renewed upward momentum, especially when aligned with structural catalysts like ETF adoption and the upcoming mining halving.
Q: Should I buy Bitcoin during a dip?
A: Dips can present buying opportunities, but only if you have a clear strategy and risk management plan. Avoid using high leverage during uncertain times.
Q: What causes forced liquidation in crypto trading?
A: Liquidation happens when leveraged positions lose enough value that the trader’s collateral drops below exchange-set thresholds. The trade is then automatically closed.
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Final Thoughts: Volatility Is Inevitable — Preparation Is Key
The recent double dip in Bitcoin’s price serves as a powerful reminder: volatility is built into the DNA of cryptocurrency markets. While unsettling for some, these movements play an essential role in maintaining market balance.
For seasoned investors, pullbacks offer strategic entry points. For others, they underscore the importance of risk management — particularly when using leverage. As we approach key events like the 2025 halving and watch evolving ETF flows, staying informed and disciplined will be crucial.
Markets don’t move in straight lines. Corrections aren’t failures — they’re features.