Bitcoin Plummets Below $100,000 Triggering $209.1 Million in Liquidations

The cryptocurrency market experienced a significant downturn as Bitcoin (BTC) plummeted below the $100,000 mark, triggering over $200 million in liquidations. In the past 24 hours, Bitcoin recorded $209.1 million in liquidations across major exchanges. The majority, $206.8 million, came from perpetual contracts, with an additional $2.4 million from futures contracts. Long positions were hardest hit, accounting for $184 million, compared to $25 million in short liquidations. The data reflects activity across platforms such as Bybit, Binance, OKX, Bitfinex, Huobi, and BitMEX.

This extended liquidation coincided with Bitcoin falling below the psychological $100,000 mark. Bitcoin was trading at $99,046 at press time, down 4% in the last 24 hours and over 5% in the past week. Technically, the asset is showing short-term weakness but maintains a longer-term bullish structure. To this end, BTC is trading below the 50-day simple moving average (SMA) of $104,908 but remains well above the 200-day SMA of $87,554. The 14-day Relative Strength Index (RSI) stands at 42.15, signaling neutral to slightly oversold conditions. While not yet in oversold territory, it suggests limited buying pressure and room for a rebound if support holds.

Analysts warn that slipping below $100,000 could pave the way for further downside. The report suggested that Bitcoin could retreat to around $80,000 in the coming months if the selling pressure persists. On the other hand, cryptocurrency trading expert Michaël van de Poppe’s analysis indicated that Bitcoin has recorded a sharp rise in volatility. He views this as a potential capitulation phase, with the market nearing a major support zone. A strong reaction here could signal a reversal, while a failure to hold may lead to further downside.

The general market decline appears to be an investor reaction to the U.S. joining the Israel-Iran conflict, with President Donald Trump announcing late Saturday that American forces struck three Iranian nuclear sites. The escalation has rattled financial markets and may continue to weigh on crypto sentiment.

The market's reaction to Bitcoin's decline was swift and severe. The extended liquidation event underscored the sensitivity of the cryptocurrency market to price movements, particularly for high-value assets like Bitcoin. The liquidations not only affected Bitcoin but also had a ripple effect on other major cryptocurrencies, including Ethereum. The sell-off was exacerbated by geopolitical tensions, which added to the market's instability. The ongoing geopolitical issues in the Middle East contributed to the overall market volatility, as investors reacted to the uncertainty and potential risks.

The liquidation event also highlighted the importance of risk management in cryptocurrency trading. The significant amount of liquidations indicated that many traders were caught off guard by the sudden drop in Bitcoin's price. This underscored the need for traders to implement effective risk management strategies, such as setting stop-loss orders and diversifying their portfolios, to mitigate the impact of sudden market movements. The liquidations also served as a reminder of the high-risk nature of cryptocurrency investments, which can experience rapid and unpredictable price fluctuations.

The market's reaction to the liquidation event was mixed, with some analysts predicting further declines in the cryptocurrency market. According to the analyst's forecast, if Bitcoin were to break below the $100,000 mark, it could trigger a 50-70% drop in altcoins and an up to 80% wipeout in memecoins. This forecast highlighted the potential for further market volatility and the need for investors to remain cautious in their approach to cryptocurrency investments. The analyst's forecast also underscored the importance of staying informed about market trends and developments, as well as the need to adapt investment strategies in response to changing market conditions.

The liquidation event also had implications for institutional investors, who have been increasingly involved in the cryptocurrency market in recent years. The outflow of $19.7 million from BlackRock's spot Ethereum ETF (ETHA) marked a notable change from its recent pattern of steady buying. This outflow was the first after 30 days of continuous inflows and the biggest single-day outflow among all Ethereum ETFs. The outflow from BlackRock may point to short-term caution from institutional investors, as they react to the market's volatility and uncertainty. This highlighted the need for institutional investors to remain vigilant and adapt their investment strategies in response to changing market conditions.