Bitcoin Tops $100,000, Liquidations Soar

Over the past 24 hours, the cryptocurrency market has seen intense volatility as Bitcoin (BTC) surged past the $100,000 milestone. This breakthrough triggered nearly $1 billion in liquidations across the market, signaling a significant shift in trader dynamics.

Data from the Bitcoin derivatives market reveals heightened activity, with analysts warning of potential larger liquidation waves ahead.

Long and Short Liquidations Spike as Bitcoin Tops $100,000

Bitcoin Exchange Liquidation Map. Source: CoinGlass.
 

According to CoinGlass, approximately 190,000 traders were liquidated, incurring total losses of $970 million. Short positions bore the brunt, suffering $836 million in liquidations-the largest short squeeze since 2021. CoinGlass noted that actual liquidation figures could be even higher, as some exchanges like Binance have not fully disclosed their data.

While short positions have been heavily liquidated, the market now faces increased risk from long positions. CoinGlass’s 24-hour Bitcoin liquidation map warns that if Bitcoin falls below $100,000, long positions could face nearly $2 billion in liquidations, raising concerns of a potential “long squeeze” that could accelerate a price decline. Should Bitcoin drop further below $98,000, total liquidations might surge to $3.45 billion.

This looming risk reflects a shift in trader sentiment, with many investors increasing leverage and betting on continued price gains.

Record Bitcoin Futures Open Interest Signals Heightened Risk

Bitcoin futures open interest across exchanges reached a record $67.4 billion, indicating strong demand for short-term leveraged trading. Historically, Bitcoin’s open interest surpassing $65 billion has often preceded market corrections, underscoring the elevated risk amid the current rally.

Bitcoin’s Growing Influence in Global Finance

Bitcoin’s rally past $100,000 has drawn global attention, with its market capitalization hitting $2.05 trillion-temporarily surpassing Amazon to become the world’s fifth-largest asset. Analysts at Standard Chartered forecast Bitcoin could break its all-time high and reach $120,000 in the second quarter, fueled by growing institutional adoption and macroeconomic factors.

This surge highlights Bitcoin’s increasing role as a major financial asset, while also underscoring the volatility and risks inherent in leveraged crypto trading. Market watchers remain cautious as Bitcoin approaches new psychological and technical milestones while using charts like the Puell Multiples and the Hash Ribbon Bitcoin indicator to study price behavior and make more informed decisions.