Derivatives See $1.4B Liquidations as Bitcoin Drops Below $104K
Crypto derivatives liquidations surged to about $1.4 billion after Bitcoin dropped below $104K for the first time since mid-October. The sell-off extended to altcoins, with Ethereum sliding to $3,480, Solana down 8%, and XRP also suffering losses. CoinGlass data shows a severe long squeeze, with long positions making up 89% of total crypto liquidations—Bitcoin led at $404 million, Ethereum $355 million, Solana $156 million, and XRP $32 million. The Coinbase Premium Gap turned negative, indicating institutional selling pressure on Coinbase. This wave highlights market volatility and the risks of overleveraged trades. Traders should monitor funding rates, open interest, key support levels, and premium gaps to gauge potential recovery or further downside.
Bearish
Crypto derivatives liquidations spiking to $1.4 billion as Bitcoin tumbled below $104K signals a bearish market pressure. The dominance of long positions in the liquidation mix indicates a severe long squeeze, suggesting that overleveraged traders were forced out. In the short term, this could lead to further downside as forced selling drives prices lower and key support levels are tested. The negative Coinbase Premium Gap adds to institutional selling pressure. Over the longer term, if funding rates remain elevated and open interest decreases, market volatility may persist until deleveraging completes. Overall, these factors point to continued bearish momentum and elevated risks for leveraged positions.