$1B Wiped Out in 24 Hours as Bitcoin Plunges Below $105,000
Sharp volatility sweeps across digital assets as cascading selloffs erase billions from the market, cooling overheated leverage.
Bitcoin plunged below $105,000, wiping out over $1 billion in leveraged positions and erasing $100 billion from the global crypto market in just hours. The drop was triggered by a liquidation cascade as over-leveraged traders were forced to sell, accelerating the fall. While short-term pain hit altcoins and derivatives markets, analysts see this as a healthy reset in an overheated bull run. Macro uncertainty and profit-taking from institutions added pressure, but long-term signals—like ETF inflows and strong holder conviction, suggest the broader uptrend remains intact.
Bitcoin’s Sudden Drop
The crypto market faced another wave of turbulence over the past 24 hours, with more than $1 billion in leveraged positions wiped out as Bitcoin crashed below $105,000.
According to data from major derivatives trackers, Bitcoin fell sharply from $109,000 to around $104,700 in a matter of hours, triggering a cascade of liquidations across exchanges.Ethereum followed suit, while altcoins faced amplified losses amid a broader market correction.
The selloff erased over $100 billion in total market capitalization within three hours, pulling the global crypto market cap down to $3.8 trillion.
Why It Happened
The driving force behind this sudden drawdown lies in the highly leveraged nature of crypto trading. As prices dipped, overexposed long positions were automatically liquidated, accelerating downward momentum. The cycle of forced selling—often referred to as a “liquidation cascade”, is a hallmark of volatile crypto markets, especially during periods of elevated leverage and uncertain sentiment.
While the recent pullback has rattled short-term traders, analysts point out that such corrections are common in bull cycles. Bitcoin’s rally above $100,000 earlier this quarter attracted a surge of speculative interest, with funding rates and open interest climbing to multi-month highs. The unwinding of those positions now acts as a reset, cooling overheated leverage and potentially paving the way for a more sustainable recovery.
Macro factors also remain in play. Geopolitical tensions and shifting risk sentiment have contributed to increased volatility across risk assets, including crypto. Institutional investors, though still active, appear to be scaling back exposure temporarily as markets digest rapid price movements.
Long-Term Outlook Remains Strong
Despite the shakeout, long-term fundamentals remain intact. Spot Bitcoin ETFs continue to record steady inflows, and on-chain metrics indicate strong holder conviction.
As the dust settles, the question remains whether this correction marks the end of overextended leverage, or the beginning of a deeper retracement.
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