Bitcoin Plunges Below $92K as Liquidations Top $490M

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Bitcoin fell below $92,000 on Wednesday, triggering over $490 million in liquidations in the past 24 hours, according to Coinglass data. The drop followed a brief rally that saw BTC hit a weekly high near $95,000 before reversing course according to Coinglass data. Long positions accounted for the bulk of the liquidations, totaling $374 million, while shorts added $83 million in losses according to Coinglass data.

Ethereum and Solana also experienced significant declines. Ethereum dropped from a weekly high near $3,300 to $3,140, while Solana fell from $143 to $136. XRP registered one of the sharpest drops among large-cap tokens, declining from $2.41 to $2.20 according to Coinglass data.

Bitcoin ETFs also saw a shift in the market. U.S. spot Bitcoin ETFs recorded net outflows of $243 million on Tuesday, as the asset pulled back from a weekly high over $94,000 to just over $92,000 according to Yahoo Finance. The figures reflect a cooling in the crypto market rally, with BlackRock's IBIT seeing $228 million in inflows, but Fidelity's FBTC experiencing outflows of $312 million according to Yahoo Finance.

Why Did This Happen?

The recent pullback follows a brief period of aggressive buying in early 2026. Bitcoin had surged to near $95,000 but retraced sharply in the following days, triggering stop-loss orders and margin calls according to Coinglass data. Long positions, which had been dominant during the rally, were the most affected by the reversal.

Analysts suggest the move reflects short-term tactical repositioning rather than a loss of conviction. Sergey Kravtsov of Papaya Finance noted that the ETF outflows appear temporary, driven by short-term price swings. Illia Otychenko of CEX.IO added that the flows are part of a normalization process after stronger inflows at the beginning of the year according to Yahoo Finance.

How Did Markets Respond?

Despite the drop, Ethereum and Solana ETFs showed relative strength, with inflows of $114.74 million and $19.12 million, respectively according to Yahoo Finance. The performance of Ethereum ETFs highlights growing institutional interest in the network. Ethereum's role in real-world assets and smart contracts has made it a core holding for many investors.

XRP also saw a surge in institutional interest in 2025, with investment products seeing a 500% inflow increase. The token has outperformed the broader market in 2026, rising by 25% in the first week according to Decrypt. XRP ETFs alone attracted $1.3 billion in new capital according to Decrypt.

What Are Analysts Watching Next?

Bitcoin's correlation with the Japanese yen has also reached a record high, according to CoinDesk data. This development adds another layer of complexity to the market, as investors monitor how macroeconomic factors influence crypto prices.

Meanwhile, concerns about liquidity remain. Spot trading volumes have fallen to multi-year lows, indicating thin market depth. Thin liquidity means that large trades can cause sharp price swings, increasing the risk of abrupt reversals according to CoinDesk.

Bitcoin's price swings have also been amplified by the recent surge in leveraged products. Binance Futures is set to launch silver perpetual contracts with 50x leverage, adding to the mix of speculative assets according to Decrypt.

Institutional players continue to build their Bitcoin exposure. Bitmine Immersion Technologies added 33,000 ether to its holdings, now holding over 4.14 million tokens. The firm is also launching its in-house staking validator, which could generate over $1 million per day in rewards according to CoinDesk.

MicroStrategy has also continued to expand its Bitcoin holdings, acquiring BTC at an average price of around $75,000. The company has raised $21 billion in 2025 through equity and debt offerings to support its accumulation strategy according to Yahoo Finance.

The broader financial system is also adapting. Barclays has made a strategic investment in Ubyx, a stablecoin settlement startup, while Morgan Stanley has filed for an Ethereum ETF according to Decrypt. These moves reflect a growing acceptance of crypto as a financial asset class.

Despite the pullback, many analysts remain optimistic. Prediction markets place a 76% chance on Bitcoin reaching $100,000 rather than $69,000 according to Yahoo Finance. Arthur Hayes, co-founder of BitMEX, has even suggested that U.S. action in Venezuela could drive BTC to $200,000 according to Decrypt.

The market remains in a consolidation phase as major overhangs, such as the MSCI decision on digital asset classification, have been resolved. Analysts see the current environment as a tactical pause rather than a structural bear case according to Yahoo Finance.

However, the fragility of liquidity remains a concern. With spot volumes at year-long lows and order books shallow, the market is more sensitive to marginal flows. This dynamic raises the risk of sharp price extensions or sudden pullbacks, especially as desks return from the holidays according to CoinDesk.