Key Takeaways:
Bitcoin (BTC) dropped below $104,000, triggering over $1.3 billion in leveraged futures liquidations.
Long traders accounted for nearly 90% of total losses, wiping out $1.17 billion in bullish bets.
Ethereum (ETH) fell to around $3,650, and Solana (SOL) dropped near $157, with combined altcoin liquidations exceeding $300 million.
Bitcoin’s Breakdown Triggers Massive Liquidation Wave
Bitcoin’s sharp decline below the $104,000 level unleashed a cascade of forced liquidations as leveraged futures traders were caught off-guard.
Data shows over $1.3 billion in total liquidations within 24 hours — one of the largest in recent weeks — with long traders absorbing most of the pain.
The sell-off followed a failed attempt to reclaim the $113,000 resistance zone over the weekend, setting the stage for aggressive unwinding once downside momentum accelerated.
Ethereum and Solana Extend Losses
Altcoins mirrored Bitcoin’s weakness:
Ethereum (ETH) slid more than 6%, trading around $3,650.
Solana (SOL) plunged 8% to about $157, marking one of its weakest sessions since August.
Together, the two accounted for over $300 million in liquidations as speculative sentiment evaporated.
The broader crypto market capitalization dropped roughly 4%, retreating to around $3.6 trillion.
Market Mechanics and Outlook
Liquidations occur when traders using margin are forced to close positions as collateral values fall below maintenance levels.
Large waves of long liquidations often mark points of capitulation — temporary bottoms where leverage is flushed from the system — though continued selling could still lead to deeper drawdowns.
Despite the reset, open interest remains high at nearly $30 billion, suggesting leverage hasn’t fully cleared.
With the Federal Reserve’s rate decision approaching later this week, traders remain cautious amid persistent macro uncertainty.
Bottom Line
Bitcoin’s slide below $104K has reignited volatility across crypto markets, wiping out over $1.3 billion in bullish positions.
While leverage resets may pave the way for eventual stabilization, the short-term outlook remains fragile as markets brace for further macro-driven moves.
