Crypto Market Turmoil: $298M Liquidations as Bitcoin Tests $96K

The cryptocurrency market is grappling with another bout of volatility as its upward trajectory encounters resistance. The total market capitalization has dipped to $3.15 trillion, with Bitcoin (BTC) sliding to $95,705, triggering a cascade of liquidations worth nearly $298 million in just 24 hours.

Data from Coinglass reveals that over 110,705 traders faced liquidations due to the market downturn. The total liquidation amount reached $298 million, with long trades bearing the brunt of the losses. A staggering $206 million came from liquidated long trades, while short positions accounted for $92 million. The largest single liquidation occurred on Binance, with a massive $7.5 million trade wiped out.

Binance also saw the highest number of liquidations, totaling 38.67% or about $104.03 million. Other major exchanges, such as Bybit, OKX, and Gate.io, also suffered significant losses, with $50.18 million, $49.59 million, and $31.24 million, respectively.

Bitcoin is currently testing its support level at $96,000. If it fails to hold above this price, a deeper correction could follow, further rattling investor confidence. One of the key factors contributing to Bitcoin’s decline is the substantial outflows from Bitcoin ETFs. Data from Farside shows that Bitcoin ETFs experienced an outflow of $129 million on February 18, adding more pressure to the asset.

The Crypto Fear and Greed Index has dropped to 37, indicating that traders are growing increasingly nervous. Many traders are now betting against Bitcoin’s recovery by opening short positions.

Bitcoin is not the only asset feeling the heat of the market downturn. Leading altcoins, including Solana (SOL), XRP, and Dogecoin (DOGE), have also suffered significant price declines. The anticipation surrounding exchange-traded funds (ETFs) for XRP and Solana has not been enough to stabilize their prices in the short term.

As the market struggles persist, traders are closely watching Bitcoin to see if it can maintain its key support level. The outcome of this critical test could set the tone for the broader