CMC News

Bitcoin Crashes Below $109K Triggering Massive $1.1B Liquidation Event

Major cryptocurrencies experienced sharp declines Thursday, with $BTC falling 3.6% to under $109,554 and liquidations exceeding $1.1 billion across derivatives markets. The leading digital asset dropped nearly 7% for the week, according to market data.

$ETH declined 7% to $3,887 during Thursday afternoon trading in New York. Both $SOL and $DOGE suffered heavier losses, dropping 7.7% and 7.6% respectively to trade at $197.52 and $0.23.

The meme coin and #Solana represent the biggest weekly losers among the top 100 cryptocurrencies by market cap, with each declining approximately 21%. Traditional markets also fell, with the S&P 500, Nasdaq, and Dow Jones shedding value.

CoinGlass data reveals over $1 billion of the liquidations involved long positions betting on higher prices. #Liquidations concentrated heavily on leveraged derivatives as traders faced margin calls during the sell-off.

Glassnode analysts noted $BTC showed "signs of exhaustion" as long-term holders realized profits and #ETF flows decelerated. The current bull cycle has lasted 1,030 days, approaching the roughly 1,060-day duration of previous bull markets.

#BitcoinTraders on prediction market Myriad expect further downside, with 70% betting that $BTC will hit $105,000 before reaching $125,000. The digital asset's all-time high remains at $124,128 achieved in August.

Juan Leon from Bitwise explained that crypto faces pressure from macro uncertainties, including potential government shutdowns and geopolitical tensions. Rising unemployment combined with upward GDP revisions could reduce interest rate cut likelihood.

However, Leon maintains optimism about crypto's long-term trajectory, citing the #GENIUSAct and growing institutional adoption. Unlike previous retail-driven cycles, this cycle features slower but more sustained institutional demand patterns.