- Bitcoin briefly plunged to $100,000 following a sharp market sell-off.
- Over $1.6 billion in leveraged long positions were liquidated within 24 hours.
- The crash was driven by a “risk-off” mood and uncertainty about Fed rate cuts.
Cryptocurrency markets were shaken by a forced selling wave late Monday, triggering a steep downturn that briefly pushed Bitcoin to the $100,000 level and wiped out more than $1.6 billion in leveraged long positions.
An abrupt deleveraging event—among the largest since September—sent shockwaves through digital asset markets, with major altcoins such as Ether, Solana and XRP suffering heavy losses as fresh macroeconomic fears spooked investors.
At the heart of the turmoil was a massive series of liquidations. More than $2 billion worth of crypto futures contracts were forcibly closed over the past 24 hours, and CoinGlass data showed that long traders—those betting on higher prices—accounted for nearly 80% of the losses, roughly $1.6 billion.
This automatic selling pressure occurs when traders using borrowed funds see their positions move sharply against them, forcing exchanges to liquidate assets to cover losses.
Macro headwinds and a risk-averse mood
The sell-off was fueled by a broader “risk-off” sentiment sweeping financial markets.
Analysts pointed to a combination of factors that unnerved investors and prompted them to exit speculative assets.
“Recent speculation that the FOMC might delay another rate cut this year, along with concerns about tariffs, credit market conditions and equity valuations, helped push markets lower,” Gerry O’Shea, head of global market intelligence at Hashdex, said in an email to CoinDesk.
He added that profit-taking by long-term holders has also influenced Bitcoin’s price, calling it an “expected phenomenon as the asset matures.”
Bitcoin at a crossroads: testing support
After the drop, Bitcoin recovered modestly and traded near $101,000. The token, however, was still down about 5.5% over the past day and more than 10% for the week.
The pain was deeper among altcoins: Ether plunged roughly 10%, while Solana and BNB fell about 8% and 7%, respectively.
Despite the sharp downturn, some analysts maintain a positive long-term view for Bitcoin.
“While $100,000 may be a psychologically important support level, we do not see today’s price action as a sign that Bitcoin’s long-term investment case has weakened,” O’Shea said.
With the timing of the Federal Reserve’s next move uncertain and global risk appetite fragile, the coming days will be a crucial test for markets to determine whether Bitcoin can hold current levels or face another wave of forced selling.