Lead
Bitcoin fell through $98,000 in Friday’s Asian session—the first trip below that handle since May—triggering a wholesale flush of leveraged longs across centralized exchanges. CoinDesk data show more than $1 billion of crypto positions liquidated within 24 hours, including a $44 million BTC long on HTX, as funding rates snapped from positive to negative amid a macro-driven selloff. (CoinDesk)
Liquidation Wave
Per CoinGlass figures referenced by CoinDesk, roughly $887 million of the liquidations came from long positions, underscoring how stretched bullish bets had become after last week’s failed bounce. About 235,000 traders were forced out of positions, with Bybit, Hyperliquid, and Binance each logging $180 million-plus in long-side liquidations—more than 85% of all forced exits during the session.
The most violent action occurred between 04:32 and 04:35 UTC, when BTC plunged from $99,000 to $97,000 with little resting liquidity. Market makers noted that order books below $100,000 were shallow after days of de-risking by ETF desks, allowing the selloff to cascade quickly. Ether dropped over 8% to the $3,500 area, while SOL, ADA, XRP, and DOGE saw comparable percentage declines. (CoinDesk)
Macro Pressure
Charts weren’t the only culprit. The move coincided with a grim Chinese data dump showing industrial production slowing to 4.9% year over year and fixed-asset investment contracting 1.7% over the first 10 months of 2025. Asian equities sold off immediately, dragging the MSCI Asia Pacific Index lower by 1.3% and hurting risk appetite globally. U.S. traders also dialed back expectations for a December Fed rate cut—pricing sub-50% odds after cautious FOMC commentary—which pushed Treasury yields higher and drained liquidity from speculative assets.
Technical Damage
BTC’s decisive break beneath the psychological $100,000 mark now shines a spotlight on support around $94,000, where on-chain realized price and spot liquidity overlap. Options desks report increased demand for $90,000–$95,000 downside hedges into the weekend, while basis trades flipped negative on both CME and Binance perps—signaling short-term bearish bias.
Large-cap altcoins will likely mirror BTC’s next move: funding has normalized, but open interest remains elevated relative to spot turnover, leaving additional squeeze risk. Until macro data stabilizes and ETF flows stop bleeding, traders expect range-bound chop between $94,000 and $102,000.
What to Watch Next
- Depth Metrics: Keep an eye on aggregated order-book depth from Kaiko or CoinRoutes; a rebound toward pre-selloff levels would suggest stabilized liquidity.
- ETF Creations/Redemptions: Another day of heavy creations could help rebuild trust, while continued redemptions would confirm that institutions are still de-risking.
- Macro Calendar: U.S. CPI revisions and next week’s Fed minutes are the next catalysts that could re-price rates and swing risk appetite back in crypto’s favor.
For now, the message from derivatives is clear: positioning got too aggressive, and BTC won’t regain momentum until the market resets with cleaner leverage and calmer macro currents.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research.