Bitcoin fell to just above $100,000 late Monday before slightly rebounding to $101,000, as a wave of forced liquidations and renewed macroeconomic concerns wiped out billions in speculative positions across cryptocurrency markets.
According to CoinGlass, over $2 billion in futures contracts were liquidated in the last 24 hours, with long traders accounting for nearly 80% of the losses at $1.6 billion.
Liquidations happen when traders using borrowed funds are compelled to close their positions because their margin falls below required levels. On crypto futures exchanges, this process is automatic; when prices move sharply against a leveraged trade, the platform sells the position into the open market to cover the losses.
Large clusters of liquidations among long traders can indicate capitulation and potential short-term bottoms, while significant short liquidations may precede local tops as momentum shifts.
Traders can monitor where liquidation levels are concentrated, which helps identify zones of forced activity that can act as near-term support or resistance.
This wipeout signifies one of the largest deleveraging events since September, highlighting the fragility of positioning after recent volatile price movements.
Bitcoin decreased by 5.5% in the past day and is down over 10% for the week. Ether dropped 10% to $3,275, while Solana’s SOL and BNB lost 8% and 7% respectively. XRP, Dogecoin, and Cardano also fell between 5% and 6%.
The total cryptocurrency market capitalization fell back toward $3.5 trillion, its lowest level in over a month.
“Bitcoin traded around $100,000 today as risk-off sentiment took hold of financial markets, affecting a wide range of digital assets, stocks, and commodities,” said Gerry O’Shea, head of global market insights at Hashdex, in an email to RialCenter.
“Recent speculation that the FOMC may opt against another rate cut this year, along with concerns over tariffs, credit market conditions, and equity valuations, contributed to market declines. Bitcoin’s recent price trend has also been influenced by selling from long-term holders — a typical behavior as the asset matures,” O’Shea added.
On exchanges, Bybit accounted for $628 million in liquidations, followed by Hyperliquid with $533 million and Binance at $421 million. The largest single closure was an $11 million BTC-USDT long on HTX.
Despite the volatility, analysts remain optimistic about the broader outlook.
“While $100,000 may serve as a psychologically significant support level, we do not interpret today’s price action as a sign of a weakening long-term investment case for Bitcoin,” O’Shea stated.
With the Federal Reserve pausing on further cuts and global risk appetite still fragile, traders suggest that the next few sessions will test whether Bitcoin’s bounce can evolve into a sustained recovery or if another wave of forced selling is imminent.
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