The cryptocurrency markets faced a sharp crash as Bitcoin fell below the psychological $110K mark, triggering liquidations amounting to approximately $940 million.
Overall Market Liquidations
Liquidations impacted numerous large traders. In total, approximately $940 million was liquidated, with Ethereum traders incurring losses of about $320 million while Bitcoin suffered around $277 million. Non-verified positions in SOL, XRP, and DOGE added tens of millions to the overall liquidation volume.
The Importance of the $110K Mark
The psychological level of $110K is crucial for algorithmic trading strategies and traders as breaching it provokes a cascade of selling, reducing order depth and forcing traders to deleverage. The price dropping to the high $109Ks only amplified the volatility.
Future Perspectives and Market Analysis
Despite recent liquidations, funding and demand for ETH remain strong. If positive changes in ETF flows and macroeconomic news are observed, this could facilitate recovery. Traders are monitoring support levels in the $105K-$100K range, as breaching them may lead to further declines.
With $940 million liquidated in one day and Bitcoin dropping below $110K, the market looks turbulent. Future recovery hinges on ETF flows and cryptocurrency demand.
