An unexpected decrease in the Bitcoin (BTC) course caused panic on the cryptomarkt. There was a chain reaction that led to the greatest liquidation wave of the year. The crash makes investors wary for further falls. Do we have to worry?
BTC course folds down and drags long positions
The Bitcoin race made a dive to the level of $ 112,000 this morning. For many traders, that movement came unexpectedly. The cause for the flashy crash was a large group of lung traders, who speculate on an increase in course, but was misled.
Analyst Ted points to X to the largest liquidation of throughout 2025. Figures show that within 24 hours more than 1.7 billion dollars were liquidated in lifting tree positions. The vast majority of this, more than 1.6 billion dollars, concerned lung positions. The optimistic sentiment that prevailed was therefore completely smothered in the bud.
On many trading platforms you can essentially borrow money to act with a lever. That increases your potential profit if your prediction is correct. However, the downside is that your position is automatically closed as soon as the course moves too far against your expectation. Your collateral, in this case Bitcoin, which serves as a certainty for the loan, will then be sold forced to limit losses.
This can then lead to a downward spiral, in which liquidations cause further price falls, which in turn leads to even more liquidations.
More pain for bitcoin possible
At the end of last week we saw an upward trend after the first interest rate reduction of the year in the United States. That caused a wave of lung positions among investors. Now, however, the uncertainty seems to sneak back in the market. The big question is: what can we expect in the coming days?
Analyst Dariusz Kowalczyk warns that Bitcoin has lost his upward trend in the short term. According to him, the digital currency is approaching a critical support level around $ 111,500. Whether that level will last is uncertain.
“The market structure looks fragile,” says Kowalczyk. Bitcoin breaks through it, then a further decrease towards the area is around $ 107,000 obvious, a possible correction of almost five percent.
However, other analysts zoom out and remain optimistic in the middle to long term. Borg points to the well -known “Bear Trap”. According to him, the bull market is still going on and we have not yet reached the pure euphoria phase in the market. According to him, the current crash is the last hurdle before the real bullish rally is used, as we saw in 2017 and 2021.
Macroeconomic uncertainty reinforces the pressure
The price fall comes at a time when the financial markets become uncertain again about the interest rate policy. This week everyone looks at new inflation figures in the United States, with the PCE index on Friday.
Federal Reserve (FED) chairman Jerome Powell also speaks on Tuesday at an important economic event in Rhode Island. Investors hope for signals for further interest rates. If not, we could simply meet further decreases.
Source: https://newsbit.nl/paniek-op-de-cryptomarkt-handelaren-zien-17-miljard-dollar-verdampen/
