Crypto Market Hit by Sharp Downturn, Massive Liquidations, and Increased Whale Activity
The cryptocurrency market has faced a significant downturn, with Bitcoin’s price briefly dipping below $105,000 and over $644 million in long positions liquidated—triggering a long squeeze. In total, liquidations across the market reached $712 million in just 24 hours, mostly affecting bullish traders. Similar pressure was seen in Ethereum and Solana, with $116 million and $32 million in liquidations respectively. Analysts such as Blend Visions report nearly $100 million wiped from the market in the past week, highlighting ongoing volatility and weakening momentum. Whale activity has surged, with increased profit-taking at recent Bitcoin peaks suggesting a likely local market top. Notably, a major trader named ’James Win’ nearly faced liquidation with close to $1 billion in leveraged positions, underscoring mounting liquidation risks and potential domino effects. While these price corrections may offer buying opportunities for experienced investors—historically resulting in higher lows—the market remains exposed to further volatility and the threat of cascading liquidations. Crypto traders are advised to stay alert to changing dynamics, monitor whale transactions, and be prepared for continued price swings.
Bearish
The current news highlights substantial downward pressure in the crypto market, marked by sharp declines in prices and a wave of liquidations impacting major assets like Bitcoin, Ethereum, and Solana. Over $700 million in positions were liquidated within a day, primarily affecting bullish traders, which typically triggers further selling. The increased activity from large holders (whales) and the near-liquidation of significant positions reflect fragile market confidence and raise the risk of further domino effects. Although historical patterns sometimes show higher lows forming after such downturns, the prevailing momentum and liquidity risks signal ongoing volatility and possible further declines in the short term. For traders, the environment remains risky, and caution is advised as additional sell-offs or forced liquidations could push prices even lower before initiating any potential recovery.