$1B liquidation bloodbath: Can Bitcoin hold $100K amid Musk–Trump drama?
- Bitcoin’s $100k degree faces intense strain because the market balances between liquidity resets and rising worry.
- Almost $1 billion wiped from leveraged positions in a single day.
Macro headwinds have been already placing strain on crypto, however now political uncertainty is popping that strain right into a full-blown squeeze.
Bitcoin’s [BTC] $100k valuation is hanging by a thread. Yet one more shock, and it may snap.
In the meantime, the market’s sharply divided. Some view the latest liquidation cascade as a “strategic” liquidity seize to let good cash reload.
Others aren’t shopping for it, pointing to surging “worry” as proof of an actual breakdown in confidence.
Briefly, the market construction is fragile. We’re treading a razor-thin line between conviction and capitulation. Yet one more arduous squeeze, and Bitcoin would possibly lastly decide a aspect.
Political breakup turns right into a market massacre
The fallout from Trump and Musk’s showdown hit leveraged gamers hardest. In simply 24 hours, a staggering $981.34 million in liquidations blew up, marking one of many biggest single-day wipeouts we’ve seen in latest reminiscence.
Unsurprisingly, practically 90% of these wiped have been lengthy positions. Because the market flipped in opposition to them, compelled liquidations and frantic guide exits drained near $880 million straight out of their pockets.
The fallout? Bitcoin slammed 3% decrease, logging its greatest day by day drop in two weeks, with a low wick at $100,421 – a value it hadn’t touched in virtually a month. However that breakdown was simply the floor crack.
Supply: TradingView (BTC/USDT)
Beneath, sentiment deteriorated fast.
The Crypto Concern & Greed Index dropped from 55 to 46, slipping deeper in the direction of the “worry” territory. Capital adopted the temper: BTC ETFs logged $278.4 million in web outflows, whereas 2,881 BTC flowed into the highest 10 exchanges.
However regardless of the panic, futures merchants didn’t flinch. Bitcoin’s Open Curiosity (OI) held regular above $70 billion, even ticking up 1.05% at press time.
The shortage of broad deleveraging factors to at least one factor: Danger urge for food, a minimum of within the derivatives area, continues to be alive.
However in a market this risky, that’s a double-edged sword.
Bitcoin’s $100k degree locked in a high-stakes gamble
On the bullish aspect, many merchants are framing the political fallout as a tactical play. A high-stakes maneuver, even a type of “macro manipulation,” aimed toward accelerating dovish pivots like price cuts.
In that context, the sharp liquidation cascade seems much less like panic and extra like a coordinated liquidity reset.
How? Regardless of the violent drawdown, spot markets haven’t seen important offloading.
In truth, BTC has already retraced practically 50% of the drop, posting a 1.5% restoration to reclaim $103k at press time, suggesting “dip demand” stays lively.
That stated, people are nonetheless cautious. The shaky U.S. financial system, coupled with Musk’s pushback in opposition to a debt-bloating invoice, units the stage for a possible capital flight again into safer havens like bonds.
Supply: Buying and selling Economics
If Treasury yields maintain sliding, that hefty liquidity stacked up in Bitcoin derivatives may flip right into a ticking speculative bubble able to pop.
Retail merchants, in flip, would possibly avoid danger, and that promoting strain may simply shove BTC again beneath the $100k threshold.
So whereas Bitcoin has saved itself this time, the battle between bullish conviction and looming capitulation is much from over.
