$BTC
Bitcoin Drops Below $106K as Bullish Bets Crack Under Pressure
Bitcoin slipped beneath $106,000 as forced liquidations swept the crypto markets, with around $1.2 billion in crypto positions wiped out over 24 hours.
Roughly 79% of these liquidations were longs, signaling overleveraged bullish positions collapsing.
Bitcoin bore about $344 million of the losses; Ether lost ~$201 million; Solana ~ $97 million.
Major venues seeing heavy liquidation activity included Hyperliquid, Bybit, Binance, and OKX.
The broader macro backdrop—U.S.–China tensions, monetary tightening, and risk-off sentiment—intensified the pressure.
---
Leverage Overhang and Liquidation Cascades
The recent tumble in Bitcoin reflects how leveraged longs had accumulated aggressively, leaving the market vulnerable to a sharp reversal. Once price breached key support levels, margin calls and forced liquidations rippled through derivatives markets.
Because so many positions were aligned on the same side (i.e. bullish), the forced unwinding triggered a liquidation loop—each cascade of closures pushing the price lower, inducing further liquidations.
Hyperliquid stood out, with around $391 million in liquidations tied to its platform, making it one of the largest contributors to the sell-off. Other platforms such as Bybit, Binance, and OKX also saw large hits.
One particularly large liquidation was a $20.4 million ETH-USD long removed from Hyperliquid.
Macro Risks Amplify the Slide
While leverage dynamics set the stage, external pressures provided the spark. Renewed friction between the U.S. and China has eroded risk appetite globally, and tightening liquidity conditions in traditional markets have pushed investors toward safety.
In such an environment, speculative assets like crypto become more susceptible to violent corrections. With many bettors using borrowed capital, the downside cascaded quickly.
What Comes Next — Key Levels & Scenarios
Support zones to watch: Market participants will closely monitor ~$104,000 and the $100,000 level for stabilization.
