Massive leveraged positions wiped out as crypto markets show signs of exhaustion
Bitcoin’s sudden drop below $104,000 has triggered one of the largest liquidation waves in recent weeks, clearing out more than $1.37 billion in crypto positions. Data from market trackers shows that nearly $1.2 billion came from long trades, reflecting the market’s vulnerability after weeks of tightening liquidity and profit-taking among large holders.
The sharp fall pushed BTC to an intraday low of $103,860, marking its weakest level in two weeks. Major altcoins followed the slide — Ether fell 6%, BNB dropped 8%, and Solana lost nearly 10%, driving the total crypto market value down to around $3.6 trillion.
Analysts say the decline reflects a fragile market structure still reeling from October’s major liquidation event and continued outflows from spot Bitcoin ETFs.
“The market remains in a fragile state. We are not in full capitulation yet, but confidence among buyers is fading,” said analysts from a leading exchange research team. “Unless Bitcoin recovers decisively above current resistance, time will work against bullish sentiment.”
The Crypto Fear & Greed Index has slipped to 21, signaling deep caution across investor sentiment.
“There’s been persistent fear since last month’s wipeout,” said one blockchain research analyst. “Traders are staying defensive due to global liquidity concerns and the ongoing government shutdown in the U.S.”
ETF data shows nearly $187 million in net Bitcoin ETF outflows and $136 million from Ethereum funds in just one day, while Solana ETFs continue to attract modest inflows — a sign that traders are rotating toward higher-risk assets despite broader weakness.
On-chain data reveals declining liquidity and muted derivatives activity, suggesting demand remains thin across major exchanges.
The latest wave of liquidations highlights how fragile market confidence has become — and underscores the growing dependence on ETF inflows and institutional demand to sustain Bitcoin’s current valuation.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.