Bitcoin Faces Another $1 Billion #Liquidation Risk as BTC Dips Below $118K Amid Rising Leverage and Market Volatility

Bitcoin Slides Below $118K, Triggering $961 Million in Crypto Liquidations

Bitcoin (BTC) recently experienced a sharp pullback, tumbling from $124,000 to below $118,000, resulting in a staggering $961 million in liquidations across the crypto market. Of this, $821 million came from leveraged long positions, highlighting the intense pressure on traders betting on a sustained breakout.

The swift drop indicates that bulls chasing the latest highs were caught off-guard, as long liquidity clusters were swept and selling pressure mounted. At the time of writing, Bitcoin is trading around $115,000, reflecting a 2% intraday dip, while two prominent liquidity clusters remain stacked, suggesting potential support zones—but also the risk of further liquidation cascades.

This sudden decline raises a critical question: Are we on the verge of another crypto market bloodbath?

Bitcoin Rotation Sparks Derivatives Frenzy

The recent pullback was not limited to Bitcoin alone. The broader market saw a $1 billion liquidation event, indicating that capital exited altcoins in addition to $BTC . TOTAL2, which tracks the aggregate market cap of all cryptocurrencies excluding #BTC , fell by 3.84%, confirming that the sell-off extended beyond Bitcoin.

Meanwhile, #Bitcoin #dominance (BTC.D), which measures BTC’s share of the total crypto market cap, has been hovering around 59% for the past week. A minor intraday increase of 0.40% suggests a rotation of capital back into Bitcoin as investors seek safer positions amid market turbulence. Conversely, TOTAL2 slid by 2.74%, signaling continued outflows from altcoins in favor of BTC.

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