Bitcoin plunged to $108,652 on BitStamp on Thursday, wiping out more than $265 million in Bitcoin’s long position, potentially the most dramatic hangover in Crypto.
Bitcoin Crater
Call it a great leverage purge. Not only did Bitcoin crash to $108,652 on the Bit Stamp, it also rattled traders, but it also caused a domino effect of liquidation. Over $265 million in BTC long plays have leaked today, turning the floor into a massacre of leveraged bets.
This was not a change in your garden. The drop triggered forced margin calls, drastically elicited a stop loss, and carefully sent a long bet of size to the massacre. Market data from Coinglass shows that these were not fringe transactions. They were big, bold, and dangerously expanded. The $145 million of these long wipeouts came just after the price sunk.
To be clear: The perpetrator was not a weak foundation on its own. Instead, it was a perfect storm of over-leverage that satisfies the technical collapse. When the price fell apart, the cascade of liquidation supplied itself until gravity finished the work.
Where do you go from here? Some market analysts have focused on about $103,000 to $105,000 for reset zones where stronger hands may intervene. But the momentum is a whimsical beast. If panic is spreading, even the floor can collapse. At pressing at 2:22pm in the eastern part, BTC is above the $109,000 range aimed at collecting $110K. That hasn’t happened yet.
Such flashes are part of the Bull Cycle Playbook. They punish the greedy people, cleanse the market, and reset expectations. The question now is whether this dip is just a brutal footnote or the beginning of something troubling. Either way, Long was licking their wounds, and the market reminded everyone once again that the cryptography line between glory and doom is razor-thin.
