Bitcoin Plunge Below $110,000 Triggers $524M in Crypto Liquidations

The cryptocurrency market has recently faced significant turmoil as Bitcoin’s price dropped below $110,000 on Thursday morning. This decline triggered a wave of liquidations totaling approximately $524 million. Consequently, the overall market capitalization decreased by 3.1%, bringing the total to around $3.85 trillion.

Bitcoin and Altcoin Performance

At the time of the drop, Bitcoin reached a low of $110,000 but managed to recover slightly to $110,418, marking a 1.3% decline for the day according to CoinGecko data. The pressure extended to altcoins, which also suffered losses. For example:

• Ethereum decreased by 1.8%, now trading near $4,000.
• XRP fell by 4%, currently at approximately $2.40.
• Solana, Cardano, and Dogecoin experienced drops of 4.9%, 3.5%, and 3.9%, respectively.
• Tron was the only exception among the top ten cryptocurrencies, showing a 1.2% increase.

Market Insights

According to Wenny Cai, co-founder and COO of the crypto derivatives platform SynFutures, liquidity is shifting back towards Bitcoin and stablecoins due to a growing risk-off sentiment among investors. This trend has contributed to the market’s overall downturn and the substantial number of liquidations noted earlier.

Max Shannon, a senior associate at Bitwise Europe, highlighted that this market decrease follows a significant $19 billion liquidation event from last weekend, suggesting a cautious approach moving forward. He noted the modern risk climate formed by ongoing U.S.-China trade tensions, which influence traders’ sentiment and liquidity positions.

Implications of Derivative Trading

Market research indicates increased bearish activity among traders, with options analytics platform GreeksLive reporting over $1.15 billion flowing into “out-of-the-money” puts over the past 24 hours. This volume represents nearly 28% of total options activity.

The concentrated trading range, particularly between $104,000 and $108,000, implies that market participants are hedging against further declines. The shift in options skew to a more negative outlook demonstrates that liquidity providers are pricing in added risk for future price movements.

Future Outlook

Given the current market conditions, predictions are grim. On the Myriad prediction market, launched by DASTAN, users estimate only a 10% to 15% chance that Bitcoin, Ethereum, and Solana will close above $115,000, $4,200, and $210, respectively, by Friday.

Shannon added that altcoin prices may continue to fluctuate in the near term, with higher-quality assets potentially catching up. There remains uncertainty regarding market recovery, which appears closely tied to the de-escalation of trade tensions and the re-emergence of institutional demand.