Bitcoin tumbles below $116K in bloodbath for crypto longs

Over $585.86 million in long positions were liquidated as Bitcoin fell 2.63% to $115,356, according to CoinGlass. Ether liquidations totaled $104.76 million at a 1.33% drop to $3,598. Across all assets, liquidations reached $731.93 million within 24 hours, marking one of the largest deleveraging events this year.

Data indicated that 213,729 traders were liquidated, reflecting the high leverage prevalent in the market. Bitcoin’s swift descent from $117,800 to $115,300 occurred within three hours, triggering cascading margin calls. Short-term funding rates spiked to 0.13%, signaling stress in perpetual futures markets.

On-chain analytics showed a 4.8% increase in stablecoin inflows to exchanges, suggesting traders converted collateral to meet margin requirements. Exchange reserves for top ten platforms rose by 20,000 BTC, indicating increased sell-side supply. Nansen reported that traders with positions over $1 million were the hardest hit, accounting for 60% of total liquidations.

Market participants noted that these events often precede volatility spikes, with historical patterns showing bouncebacks after major deleveraging. Technical oversold readings on RSI and a return of bid liquidity near $115,000 provided potential support zones. However, unsettled macro factors could drive further downside if risk sentiment remains fragile.

Analysts will watch CME’s commitment data and Federal Reserve communications for next directional cues. A sustained recovery above $117,500 could alleviate pressure, while failure to reclaim $116,500 may open $114,000 as the next target. Traders remain cautious amid lingering macro uncertainty and high leverage levels in the derivatives market.