The end of the week was noted by extreme market turbulence, with over $1.15 billion in leveraged positions being liquidated across major exchanges.
This cascade of forced selling, which primarily affected traders in long positions, caused Bitcoin (BTC) and Ethereum (ETH) to break key support levels.
Prices falling
Bitcoin briefly dropped below $109,000, with its price falling 2.1% in the 24-hour period. Ethereum suffered an even steeper decline, dropping 3.3% and losing the critical $4,000 level.
Previously, Coinidol.com reported that Bitcoin was trading in a limited range. The price fell and broke below the current support level of $111,000, which may cause a drop to a low of $107,000.
This sharp correction was fueled by several factors:
Heavy ETF Outflows: Both Bitcoin and Ethereum spot ETFs recorded major outflows, signaling a pause in institutional buying after a period of intense activity.
On-Chain Signals: Analysts noted that long-term holders were realizing profits, and the Crypto Fear & Greed Index dropped sharply to a level not seen since April, reflecting a dramatic shift toward extreme investor caution.
Leverage Wipeout: The liquidation event itself was the most immediate driver, as the forced closure of over $1.15 billion in long bets created massive selling pressure, with the majority of the losses occurring on exchanges like Bybit and the decentralized exchange Hyperliquid.
Despite the short-term pain and the overall market cap facing fresh declines, this liquidation event is viewed by some analysts as a necessary “reset” that flushes out excess leverage, potentially setting the stage for a healthier market rebound in the future.