A sharp liquidity crunch sent bitcoin and altcoins plunging, breaking below the key $98,000 support level and triggering more than $1.1 billion in derivatives liquidations as traders brace for a trend reversal.
Approximately half of the liquidations occurred on bitcoin trading pairs, with the remainder spread across major altcoins such as ether, solana and ADA. Ethereum’s ether dropped over 9% in 24 hours, while altcoins including AAVE, JUP and SUI saw double-digit declines.
Despite the sell-off, derivatives positioning data showed no evidence of panic buying in options markets, indicating a measured response rather than a complete loss of confidence among traders. Ether’s volatility indexes mirrored bitcoin’s, while open interest in futures tied to most tokens declined.
Macro factors contributed to the downturn as equities sold off, with Nasdaq futures falling nearly 3% amid global risk aversion. The coinciding decline in crypto and traditional markets underscores growing caution ahead of potential macroeconomic developments.
Market observers are monitoring whether bitcoin can reclaim the $98,000 level of support, as failure to do so may confirm a reversal from October highs near $126,000 and solidify a bearish narrative.
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