The cryptocurrency market faces a growing threat of massive liquidations. Market analyst Jacob King, CEO of WhaleWire, warns that excessive leverage and market overextension could lead to a “catastrophic collapse,” severely impacting Bitcoin and digital asset investors.
🚨 Hundreds of Millions Liquidated Within Hours
King pointed out that just a 1% drop in Bitcoin’s price erased more than $360 million from the market within 24 hours. In just a few hours, another $100 million worth of positions vanished.
According to CoinGlass data, liquidations are accelerating – traders have already lost over $536 million in the last day, with long positions taking the hardest hit.
⚠️ “A Major Crash Is Inevitable”
King argues that the current situation reflects a heavily leveraged market near Bitcoin’s all-time high. If a mere 1% move can wipe out hundreds of millions, a sharper decline could trigger a devastating domino effect.
He warns that such a crash could be “catastrophic,” as panic selling and forced liquidations would hit the market simultaneously.
📉 Bitcoin Retreats From New ATH
Since hitting its all-time high of $124,457 on August 14, Bitcoin has already dropped more than 7%. Yesterday, it slipped below $118,000, and today it trades around $115,569.
While some analysts view this as a healthy correction before another rally, King believes it’s a warning sign of a much larger collapse.
🔮 Possible Scenarios Ahead
According to market data:
A drop to $114,000 could liquidate nearly $600 million in long positions.
A recovery to $120,000 could wipe out over $2.2 billion in short positions.
While some experts see the dip as a buying opportunity, King warns the market is standing on shaky ground and could be on the verge of a major crash.
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