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Bitcoin slid to just above $100,000 late Monday before a light rebound to $101,000, as a wave of forced liquidations and renewed macro jitters wiped out billions in speculative positions in crypto markets.
More than $2 billion in futures contracts were liquidated in the past 24 hours, according to CoinGlass, with long traders accounting for nearly 80% of the losses at $1.6 billion.
Liquidations occur when traders using borrowed funds are forced to close their positions because their margin is below the required levels. On crypto futures exchanges, this process is automatic, as when prices move sharply against a leveraged trade, the platform sells the position in the open market to cover losses.
Large clusters of long liquidations can signal capitulation and potential short-term bottoms, while heavy short wipeouts can precede local tops as momentum flips.
Traders can also track where liquidation levels are concentrated, helping to identify areas of forced activity that can act as short-term support or resistance.
The wipeout marks one of the biggest deleveraging events since September, indicative of how fragile the position has become after weeks of whipsaw price action.
Bitcoin fell 5.5% in the past day and is more than 10% in the week. Ether fell by 10% to $3,275, while Solana’s SOL and BNB lost 8% and 7% respectively. XRP, Dogecoin and Cardano also slipped between 5% and 6%.
The total capitalization of the crypto market fell towards $3.5 trillion, its lowest level in more than a month.
“Bitcoin traded above $100,000 today as risk sentiment gripped financial markets, affecting a wide range of digital assets, stocks and commodities,” said Gerry O’Shea, head of global market analysis at Hashdex, in an email to CoinDesk.
“Recent speculation that the FOMC may deliver another rate cut this year, as well as concerns about rates, credit market conditions, and equity valuations, helped drive markets lower. Bitcoin’s recent price trajectory has also been affected by selling by long-term holders – an expected phenomenon as the asset matures,” added O’Shea.
In the exchanges, Bybit counted $628 million in liquidations, followed by Hyperliquid with $533 million and Binance at $421 million. The biggest close was an $11 million BTC-USDT long on HTX.
Despite the volatility, analysts said the broader outlook remains constructive.
“While $100,000 may be an important psychological support level, we do not see today’s price action as a sign of a long-term investment case for Bitcoin,” O’Shea said.
With the Federal Reserve holding off on more cuts and global risk appetite still fragile, traders say the next few sessions will test whether Bitcoin’s rebound can turn into a sustained recovery — or whether another wave of forced selling lies ahead.
