Bitcoin Price Hits $100K Amid $250 Million in Liquidations During Crypto Selloff

The crypto market is enduring a turbulent day, as more than $250 million in long position liquidations swept through trading platforms. Traders who had placed leveraged bets on rising prices suddenly faced margin calls during a rapid price plunge. This event highlighted the fragility of high-leverage strategies in volatile conditions.

Bitcoin led the decline, dipping to a low of $100,900, its weakest level since June 23. The flagship cryptocurrency now trades at $101,087, reflecting a roughly 5% drop over the past day and trimming its market cap to $2 trillion.

Marketwide Declines and Liquidation Surge

Ethereum, Solana, and BNB, all posted comparable losses, contributing to a 4.5% contraction in the overall crypto market to $3.4 trillion. Trading volumes spiked as automated systems triggered sales to cover debts, amplifying the downward pressure across exchanges. Data from major platforms showed over $1 billion in futures positions liquidated in the preceding 24 hours, underscoring the scale of the pullback.

This downturn officially pushed Bitcoin into bear market territory, with the price falling more than 20% from its October peak. Analysts noted that such thresholds often signal shifts in investor behavior, prompting a reevaluation of risk exposure. The move came after weeks of slow moderate gains that had built up optimistic sentiment among retail and institutional buyers.

The sharp correction served to purge excess leverage from the system, a process that typically stabilizes trading in the short term. Yet it also raised questions about potential ongoing swings as the market adjusts to reduced participation. Exchange reports indicated that open interest in perpetual contracts dropped significantly, easing some immediate pressures but leaving room for further fluctuations.

Even as prices fell, onchain data revealed pockets of accumulation by long-term Bitcoin holders. These investors scooped up coins at lower levels, pointing to sustained belief in the asset’s fundamentals despite the noise. Wallet activity showed transfers to cold storage increasing, a sign that some see the dip as an opportunity rather than a setback.

Profit-taking by seasoned holders and large-scale liquidations tied to whale positions played key roles in the slide. These entities, holding substantial stakes, often influence market direction through their actions. While the $100,000 psychological barrier held firm as a floor, metrics from onchain analytics and derivatives markets painted a picture of tempered expectations ahead.