Bitcoin Plunges Below $93K, Wiping Out $1.23B in Crypto Liquidations

Bitcoin suffered a steep decline over the weekend, plunging 8.5% to $92,111 on Sunday.

The sharp drop erased more than $1.23 billion in leveraged positions, highlighting renewed bearish sentiment in the crypto market. As of now, Bitcoin is trading around $95,574, reflecting a modest recovery from its recent lows.

The correction comes just days after Bitcoin surged past $101,000, marking a short-lived rally. According to Coinglass data, the sell-off forced liquidations of:

• $222 million in Bitcoin long positions

• $221 million in Ethereum long positions

Ethereum also took a substantial hit, plummeting 11.3% as investors grappled with broader market uncertainty, including the Trump administration’s newly imposed tariffs. The weekend’s turbulence adds to growing concerns over Bitcoin’s near-term trajectory.

Why Bitcoin’s Slide Triggered Major Liquidations

The latest downturn follows a pattern of profit-taking and waning investor interest after Bitcoin’s extended rally past six figures. Analysts point to three key factors behind the decline:

1. Key Support Levels Breached: Bitcoin broke through critical support at $97,119 and $95,055, triggering a cascade of stop-loss orders and forced liquidations.

2. ETF Inflow Slowdown: Institutional demand, which fueled Bitcoin’s rise, appears to be cooling, limiting new capital influx.

3. Risk-On Asset Pullback: Bitcoin mirrored the performance of equities and commodities, suggesting a broader market trend toward caution.

Weekend liquidity conditions tend to exacerbate price swings, leaving Bitcoin vulnerable to sharp movements in low-volume environments. The ongoing uncertainty suggests further downside risk if buyers fail to reclaim momentum.

Ethereum and Broader Market Outlook

Ethereum continues to struggle, underperforming Bitcoin throughout 2024 and into 2025. Analysts warn that further liquidations could extend ETH’s decline, although some view this correction as a temporary shakeout before a potential rebound.

Key Insights:

• Ethereum is down 11.3%, trading below $2,600, with key support around $2,460.

• Traders anticipate heightened volatility, especially as global macroeconomic conditions shift.

• Bitcoin’s current price hovers around $95,574, with uncertainty over whether it can reclaim its recent highs.

For now, crypto traders remain cautious, watching for signs of stabilization in Bitcoin and Ethereum’s price action. With liquidity still thin, further volatility could be on the horizon.