Bitcoin’s rally lost steam as the leading cryptocurrency dropped below the key $110K threshold, touching its lowest level in weeks. The decline coincided with global risk aversion, as equities softened and Treasury yields pushed higher, prompting traders to reduce exposure to high-beta assets.

What Happened

• Bitcoin slid under $110,000, breaking near-term support and extending a multi-day decline.
• Data from derivatives trackers showed over $1.5B in leveraged long positions were liquidated within 48 hours.
• Ethereum, Solana, and other large-cap cryptocurrencies followed BTC lower, erasing recent gains.

Market Impact

The cascade of liquidations triggered a sharp decline in open interest and a drop in funding rates, signaling a broad deleveraging across futures markets. Spot trading volumes spiked as forced selling accelerated. Analysts noted that sentiment remains fragile, with traders reluctant to add fresh leverage until volatility stabilizes.

Why It Matters

Bitcoin’s slip back under $110K underscores the market’s sensitivity to macro conditions and positioning risks. While institutional inflows through ETFs remain a medium-term support, near-term dynamics are dominated by liquidation flows and shifts in risk appetite.

⚖️ Key takeaway: The move below $110K highlights how quickly leverage can unwind in crypto markets — reinforcing the importance of risk controls and the outsized role derivatives play in short-term price action.