Crypto Market Suffers $1.13 Billion Liquidation as Bitcoin Drops to $105,000

The cryptocurrency market saw a massive sell-off on Monday, with over $595.8 million in long positions liquidated within an hour, triggering widespread losses across major digital assets. Data from CoinGlass revealed that total liquidations exceeded $1.13 billion in 24 hours, with long traders making up nearly 93% of the losses. Bitcoin led the downturn, plunging to $105,000 before rebounding slightly to around $107,000 after failing to hold above $110,000.

The liquidation cascade erased billions in open interest and pushed down the broader market. Ethereum (ETH) dropped over 6% to $3,661, Solana (SOL) tumbled 9.4% to $170, and Dogecoin (DOGE) sank nearly 8% to $0.171, marking a 33% decline over the month. Analysts attributed the crash to over-leveraged bullish positions rather than a fundamental shift in sentiment, drawing parallels to the market crash following President Trump’s 100% tariff on Chinese goods last month, when $7 billion in positions were wiped out in an hour.

Adding intrigue, on-chain data revealed that a crypto whale opened $750 million in short positions on Bitcoin, Solana, and Ethereum just hours before the dump. According to @DeFiWimar, this trader reportedly earned over $18 million in 30 minutes. The timing coincided with renewed fears over the Hindenburg Omen, a technical indicator that previously signaled major financial crashes in 1987 and 2008.

Despite the carnage, not all whales are bearish. Another large investor was spotted opening $34 million in long positions—$18 million in Ethereum and $15.9 million in Bitcoin—at entry prices around $3,575 and $103,794, suggesting optimism for a market rebound.

As total crypto market capitalization fell below $4 trillion, losing over $100 billion in value, analysts say the next few days will determine whether this marks the start of a deeper correction or a swift recovery.