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Bitcoin's $100,000 Surge May Trigger $396M Short Liquidations

Coin WorldWednesday, May 7, 2025 9:12 pm ET

1min read

According to data from Coinglass, if Bitcoin surpasses the $100,000 mark, the cumulative short liquidation intensity across mainstream centralized exchanges (CEX) is projected to reach 396 million. This figure represents the relative importance of liquidation clusters at this price point, indicating a significant potential for market impact due to a liquidity cascade.

Conversely, if Bitcoin's price drops below $96,000, the cumulative long liquidation intensity across mainstream CEX is expected to reach 305 million. This highlights the sensitivity of the market to price movements in both directions, with substantial liquidation events possible at these critical levels.

It is important to note that the liquidation chart does not provide exact numbers of contracts to be liquidated or their precise values. Instead, the bars on the chart represent the intensity of liquidation clusters relative to adjacent clusters. A higher "liquidation bar" signifies that the underlying price will experience a more intense reaction when it reaches that level, due to the cascading effect of liquidations.

This analysis underscores the potential volatility and market reactions that could occur if Bitcoin's price reaches these thresholds. Investors and traders should be aware of these liquidation levels and the potential for significant price movements as a result of liquidity cascades.

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