Over $1.3 billion in crypto positions liquidated as bitcoin’s drop below $104,000 hits ‘fragile’ market

Bitcoin fell below $104,000 to a two-week low, triggering at least $1.37 billion in leveraged liquidations, predominantly from long positions. This downturn is attributed to persistent spot Bitcoin ETF outflows, long-term holder selling, and a general risk-off sentiment, pushing the total crypto market cap down to about $3.6 trillion.

Analysts describe the market as 'fragile,' noting waning investor conviction and structural pressure from long-term holders distributing assets. The Crypto Fear & Greed Index dropped to 21, signaling deep caution, exacerbated by macro factors like the government shutdown. While Solana ETFs saw inflows, overall sentiment is bearish, with prediction markets suggesting a high probability of Bitcoin dipping below $100,000 before 2026.

Despite the current weakness, some analysts suggest the correction might clear price inefficiencies left by an earlier crash, potentially setting the stage for a cleaner upward move. However, warnings remain that without renewed ETF inflows or institutional buying, Bitcoin could test the $100,000 region or lower in the coming weeks.

(Source：The Block)