Crypto Liquidations Exceed $800M as BTC and ETH Plunge
Over the past 24 hours, crypto liquidations topped $810 million as Bitcoin (BTC) dipped below $110,000 and Ether (ETH) slid under $4,400. Intense market volatility and overleveraged positioning fueled this sell-off. Short-dated volatility spiked, reflecting rising trader anxiety ahead of key macroeconomic catalysts. Dr. Sean Dawson, head of research at Derive.xyz, pointed to ETH’s recent rally as a trigger for elevated liquidations. Joe Consorti of Theya noted that Bitcoin’s revisit below $110,000 is “healthy” and typical before historically stronger months. Traders now brace for potential retests of $100,000 for BTC and $4,000 for ETH. This bout of market turbulence underscores the risks of high leverage and the impact of volatility spikes on margin positions. Crypto traders should monitor liquidation levels, adjust leverage, and watch macro indicators to navigate this volatile period.
Bearish
The extended sell-off and over $800 million in crypto liquidations signal heightened risk aversion and weak buy-the-dip momentum. Sharp volatility spikes have triggered margin calls and forced de-leveraging, typical of bearish corrections seen after extended rallies. With BTC below $110,000 and ETH eyeing $4,000, short-term traders face pressure to reduce positions. In the long term, de-leveraging can cleanse excessive leverage and set the stage for more sustainable recoveries. But until volatility subsides and macroeconomic catalysts provide positive surprises, market sentiment remains tilted bearish.