Cryptocurrency Market Plunges: Bitcoin Breaches $100K, Triggers $1 Billion Liquidation Wave
The cryptocurrency market experienced a dramatic downturn today, with Bitcoin (BTC) plummeting below the crucial $100,000 mark in the early hours. A relentless surge of selling pressure continued throughout the day, driving prices further down and breaching the $98,000 and $97,000 support levels by midday. This sharp decline ignited a massive liquidation cascade across the crypto futures market, wiping out over $1 billion, with more than 86% of these liquidations stemming from long positions.
According to CoinGecko market data, this marks Bitcoin’s first dip below $97,000 since May. As of writing, BTC trades at approximately $96,888, representing a daily loss of 6.4%.
The contagion quickly spread to the broader altcoin market, which also saw significant declines. Ethereum (ETH) dropped 10.4% to $3,169, while Ripple (XRP) fell 8.4% to around $2.3. Binance Coin (BNB) decreased by 5.8% to $913, and Solana (SOL) saw a 9.3% reduction, trading at roughly $141.4.
Massive Liquidations Signal Market Pain
On-chain data tracking platform CoinGlass reveals the extent of the market’s distress. Out of the total $1.027 billion in liquidations today, a staggering $889 million originated from long positions. The intensity of these liquidations was particularly pronounced over the past 12 hours, accounting for $753 million, with long positions making up $686 million of that sum.
Bitcoin traders bore the brunt of the losses, with over $452 million in BTC positions liquidated, 90% of which were long. Ethereum positions also faced substantial liquidations, exceeding $259 million.
In the past 24 hours, over 236,000 traders were forced out of their positions. The largest single liquidation event occurred on HTX, involving a BTC-USDT perpetual contract valued at $44.29 million.
Warning Signs and Macroeconomic Headwinds
The market’s vulnerability was evident even before this sharp downturn. Key indicators such as positive funding rates, continuously climbing open interest, and a gradual reduction in spot trading volume painted a picture of increasing fragility. When the market sentiment turned bearish, these factors converged to rapidly expand liquidity gaps, amplifying the downward price movement.
Compounding the crypto market’s woes are escalating macroeconomic concerns. Recent economic data from China revealed a sharper-than-expected slowdown, with industrial value-added growth at 4.9% year-on-year in October, down from 6.5% in September. Furthermore, fixed asset investment (excluding rural households) for January to October saw a 1.7% year-on-year decrease, marking a one-year low. Following this data release, Asian stock markets quickly weakened, with the MSCI Asia Pacific Index falling 1.3% and semiconductor stocks leading the decline, a bearish sentiment that swiftly permeated the cryptocurrency market.
Simultaneously, hawkish statements from several U.S. Federal Reserve officials have significantly dampened expectations for a December interest rate cut. This, coupled with global stock market volatility, further pressured cryptocurrency prices, forcing traders to re-evaluate and adjust their year-end portfolio allocations.
Looking Ahead: Support Levels and Potential Rebound
With Bitcoin breaching the $98,000 level, market attention has now shifted to the next significant support zone around $94,000. For other major altcoins, the risk of further declines remains until equity markets in the U.S. and Asia show signs of stabilization.
However, historical trends suggest that large-scale leveraged liquidations often precede a potential short-term market bottom. The critical factor for market stability in the coming days will be whether macroeconomic risks begin to subside over the next 48 hours.
Disclaimer: This article provides market information only. All content and views are for reference purposes only and do not constitute investment advice. They do not represent the views or positions of the author or BlockBeats. Investors should make their own decisions and trades. The author and BlockBeats will not be held responsible for any direct or indirect losses incurred by investors as a result of their trading activities.
