Bitcoin dropped below $110,000 on Thursday, extending a decline that has been building over the past several days. The fall triggered widespread liquidations, with over $1 billion in leveraged crypto positions wiped out in 24 hours. Most of the liquidations were long positions, including nearly $55 million tied to Bitcoin and more than $107 million to Ethereum.
Ethereum followed a similar path, losing over 6% in a single day and trading around $3,830 at its lowest point. Other major assets including Solana, XRP, and BNB also posted losses, some breaching key support levels. The overall crypto market cap fell by more than 4%, landing near $3.76 trillion.
Leverage Fuels Liquidation Wave
Data from liquidation trackers shows that the majority of losses came from overleveraged traders expecting prices to move higher. As the market declined, those positions were automatically closed, adding downward pressure and accelerating the selloff. This type of cascade is common in crypto markets when price levels fall through widely watched technical zones.
Analysts have highlighted areas for Bitcoin between $108,000 and $107,000 as significant due to clusters of liquidation targets. If these zones are breached, further selloffs could follow. Conversely, regaining levels above $112,000 could help stabilize the market in the short term.
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Stock Market Weakness Adds to Pressure
The selloff in crypto markets is also related to a broader decline in global equities. US stocks fell for a third consecutive session, with the S&P 500 and Nasdaq each dropping around 0.5%. Tech stocks led the downturn, and Tesla shares saw a particularly sharp decline of over 4%, following reports of a steep drop in European sales.
Tesla’s performance is relevant to crypto markets not just because of its past Bitcoin holdings, but also due to its role as a sentiment driver in risk-on assets. A weak showing from Tesla and other high-growth tech stocks has historically aligned with reduced appetite for speculative investments, including cryptocurrencies. Broader risk-off sentiment, fueled by uncertainty over interest rates and economic policy, is likely contributing to the cautious tone seen across both traditional and digital asset markets.
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Some Signs of Buying Activity
Despite the decline, there are signs of renewed spot buying activity at current levels. Bid-ask ratios on spot exchanges are beginning to lean toward buyers. Cumulative volume delta charts also show increased buying interest as prices approach support zones, although this remains outweighed by futures market activity.
Institutional and whale-level traders appear to be selling during this period, while smaller spot buyers have stepped in. However, the scale of spot activity is currently not enough to offset the volume of selling seen in perpetual futures markets.
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Outlook Remains Uncertain
While some indicators suggest the market may be near short-term support, broader volatility is expected to continue. The technical breakdown across major tokens, combined with macroeconomic uncertainty, leaves room for further corrections. For Bitcoin, the next support area is expected near $104,000 if selling continues.
For now, pressure from leveraged markets continues to dominate short-term price action, with traders closely watching whether support holds or further liquidations follow.
