Bitcoin Falls Below $99K Triggering Mass Liquidations

The calm was short-lived. Within a few hours, bitcoin dropped below $99,000, triggering a chain reaction : over one billion dollars in liquidated positions, altcoins shaken, and revived volatility. This episode, unusually brutal, recalls the relentless mechanics of leveraged markets. After several weeks of calm, the correction hits hard, shattering the illusion of a controlled recovery. Reckless traders pay the price for overconfidence in a market always ready to turn.

A Flash Crash Triggered by Bitcoin Dropping Below $99,000

On Sunday, the crypto market experienced a violent halt while bitcoin was aiming for a new peak against the dollar. According to data provided by Coinglass, “more than $1.03 billion in leveraged positions were liquidated in 24 hours”, a phenomenon triggered by bitcoin falling below the $99,000 threshold, a first in over six weeks.

This sharp drop hit 240,979 traders hard, whose positions were automatically closed. The biggest individual liquidation recorded happened on HTX, involving a BTC/USDT position worth $35.45 million. Ethereum was the crypto most affected by absolute value, ahead of bitcoin.

The detailed figures of this flash purge reveal the extent of the imbalance and the speed of the correction :

• $373.75 million in liquidations on Ethereum, leading the ranking ;
• $321.79 million on bitcoin, including $287 million in long positions ;
• $46.51 million on Solana and $35.83 million on XRP ;
• $96.27 million combined on a series of secondary altcoins ;
• $409.63 million liquidated in the 12 hours preceding the event ;
• An additional $350.43 million erased in the following 4 hours ;
• $921.39 million losses from long positions, compared to only $108.75 million on shorts.

This concentration of losses on long positions confirms a widespread bullish bias, which backfired on traders when the market shifted. The phenomenon also illustrates the extreme responsiveness of derivative platforms, capable of mass liquidations of positions within hours, mechanically amplifying price drops.

A Heavily Punished Excess of Confidence

Beyond the raw numbers, this wave of liquidations reflects brutal disillusionment among traders. As market data highlights, the majority of losses come from investors betting on a continued rise.

The dominance of losses on long positions suggests that traders anticipated a continuous price increase before the market reversed. This bullish bias proved fatal when bitcoin fell below $99,000, triggering a series of automatic executions on leveraged platforms. Such a chain reaction reflects the crypto derivatives market’s extreme sensitivity to any sudden trend change.

An already tense external context adds to this structural vulnerability. Last weekend saw rising geopolitical tensions and a resurgence of macroeconomic uncertainties. The market evidently reacted to a combination of unfavorable signals, in an environment already saturated with leverage.

While the reaction was brutal, it was also partially corrected, with BTC returning above the $99,000 mark. This moderate rebound does not erase the panic episode that preceded it.

This return of volatility in the crypto market inevitably raises questions about its current resilience. After several weeks of relative stability, investors seemed to have settled into a form of complacency. This episode could challenge that confidence and force operators to rethink their risk management.