Bitcoin Stabilizes? Selling Pressure Eases as Bulls Defend $107,000
Meanwhile, the Crypto Fear & Greed Index fell into deep fear territory at around 30 points—more than 20 points lower than last week.
Quick overview
- The cryptocurrency market has experienced a significant sell-off, with a total market cap decline of $800 billion in just hours.
- Bitcoin and Ethereum have both seen substantial losses, with Bitcoin threatening to drop below $106,000 and Ethereum nearing $3,800.
- Forced liquidations reached nearly $1.2 billion, predominantly affecting long positions, as traders reacted to the price drop.
- Amidst the turmoil, investors are flocking to safe-haven assets like gold, which has reached a historic market cap of $30 trillion.
With double-digit losses in altcoins and record ETF outflows, the crypto sector has seen its market cap plunge by $800 billion in just hours, while demand for safe-haven assets like gold surges.
The cryptocurrency market is facing a sharp sell-off this Friday, with Bitcoin dropping 2.1% and threatening to break below the $106,000 level, according to Binance. Ethereum fared no better, falling as much as 3.4% and nearing the $3,800 mark.
The crash extended across altcoins. Binance Coin suffered the biggest loss with a 6.7% decline, followed by Cardano (-5.3%), Dogecoin (-4.3%), Solana (-3.7%), and XRP (-3.7%), signaling an aggressive exit from lower-cap tokens.
Massive Liquidations
Selling pressure triggered a cascade of forced liquidations totaling nearly $1.2 billion in 24 hours, according to CoinGlass.
Notably, 79% of these liquidations were long positions—evidence that leveraged traders were caught on the wrong side of the move and unable to meet margin calls.
Traditional crypto investment vehicles were also hit. Spot Bitcoin ETFs saw their worst day of the month, posting $530.9 million in net outflows. Ethereum ETFs saw smaller, but still significant, outflows of $56.9 million.
As a result, total crypto market capitalization fell 6% to around $3.5 trillion—down $800 billion from the $4.3 trillion peak earlier this month.
Short Position Build-Up Signals Bearish Expectations
Bitcoin open interest surged 2.85% in the last 24 hours, surpassing $73 billion.
Analysts warn that when open interest rises as price drops, it often signals traders opening new short positions in anticipation of further declines.
Meanwhile, the Crypto Fear & Greed Index fell into deep fear territory at around 30 points—more than 20 points lower than last week.
Macro Uncertainty and Flight to Safety
The crypto sell-off comes amid escalating global trade tensions. China accused the U.S. of creating “unnecessary panic,” while concerns over regional U.S. banks persist.
In this environment, investors are rapidly shifting toward safe-haven assets. Gold surged to a historic $30 trillion market cap, undermining Bitcoin’s “digital gold” narrative at a moment of peak vulnerability for crypto investors.
Looking Ahead
Despite the turmoil, on-chain data suggests long-term fundamentals remain strong. Exchange balances continue to decline, whale activity is rising, and on-chain volume indicates accumulation—potentially setting the stage for the next major rally.
“This phase is challenging, but also strategic,” analysts note. “It may present an opportunity to position ahead of a potential rebound—while staying mindful of volatility and global risk.”
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