Bitcoin Drops Below $92,000 as Mainstream CEX Long Liquidation Volume Surpasses $1.135 Billion

Bitcoin fell below $92,000 on Monday, marking a significant drop from its recent high. The decline coincided with increased selling pressure in the crypto market. This move triggered a sharp rise in long liquidation volume on centralized exchanges.

Mainstream centralized exchanges (CEX) recorded a long liquidation volume of over $1.135 billion during the session. The surge in liquidation activity reflected heightened volatility and risk aversion among traders. Institutional and retail participants appeared to be adjusting positions amid shifting market sentiment.

Bitcoin's decline was attributed to broader macroeconomic and geopolitical factors. The U.S. military intervention in Venezuela generated uncertainty, influencing investor behavior. Market participants speculated on potential regulatory or supply-side implications for Bitcoin.

Why Did This Happen?

Bitcoin's recent movement was linked to a combination of reduced liquidity and geopolitical events. Trading volume in the crypto market dipped to its lowest level since late 2023. Analysts noted that low trading volumes often precede sharp corrections or retracements.

The Venezuela situation intensified speculation about potential supply shocks. Venezuela is believed to hold a large portion of Bitcoin in its reserves. Any regulatory or confiscatory action could remove a significant amount of supply from circulation.

Institutional investors also appeared to be reevaluating their exposure to crypto assets. ETF inflows, while positive, were not enough to counterbalance the selling pressure. Market participants were cautious amid uncertainty about macroeconomic conditions.

How Did Markets React?

Ethereum and XRP also saw mixed reactions. Ethereum stabilized just below $3,100, while XRP gained nearly 3% on the day. Investors remained focused on institutional demand, which had driven ETF inflows into both Bitcoin and Ethereum spot products.

The broader risk-on environment supported crypto prices at the start of 2026. Geopolitical tensions and the U.S. military operation in Venezuela created a safe-haven demand for crypto assets. However, this optimism was tempered by concerns about thin liquidity and potential volatility.

Bitcoin ETFs saw strong inflows during the week. BlackRock's iShares Bitcoin Trust (IBIT) alone recorded $371.89 million in inflows. Fidelity's FBTC and other major ETFs also posted significant positive flows. These movements signaled renewed institutional confidence in crypto.

What Are Analysts Watching Next?

Market observers are closely monitoring Bitcoin's ability to hold key support levels. The 50-day EMA at $91,610 remained a critical threshold. A retest of this level could provide further insight into the strength of the current bullish trend.

Analysts are also tracking on-chain metrics such as trading volume and order-book liquidity. Thin liquidity conditions have raised concerns about potential price swings. Glassnode reported that aggregate crypto spot trading volume had reached its lowest point since late 2023.

Investor sentiment is expected to remain cautious in the near term. While ETF inflows suggest institutional confidence, market participants are aware of the risks associated with low liquidity and geopolitical uncertainty. A sustained move above $94,000 would signal a potential reversal of the recent bearish trend.

Market participants are also watching for regulatory developments. The Genius Act, which established oversight for stablecoins, has provided some clarity for crypto investors. PwC has expanded its crypto audit and advisory services in response to improved regulatory conditions.

The next key event for investors will be the release of Federal Reserve policy minutes. Market participants are seeking clarity on the central bank's stance toward inflation and rate policy. This data could influence both crypto and broader risk assets.