TLDR
- $595.8M in crypto longs were liquidated in one hour as Bitcoin fell to $105K.
- Total liquidations reached $1.13B with 93% losses from long positions.
- A whale earned $18M by shorting $750M just before the market crash.
- Another whale opened $34M in new longs expecting a crypto rebound.
The crypto market saw a sharp drop as over $595.8 million worth of long positions were liquidated within one hour on Monday. Bitcoin’s price dropped to $105,200, triggering widespread losses across major digital assets and erasing over $100 billion from total market capitalization. Long traders bore most of the losses, contributing to one of the highest liquidation events of the year.
Market Sees Over $1 Billion in Liquidations
Data from CoinGlass showed that over $1.13 billion was liquidated in the past 24 hours. Long positions made up nearly 93% of the total liquidations, with Bitcoin leading the market decline. Bitcoin briefly recovered to around $107,000 but failed to hold levels above $110,000.
Ethereum also dropped over 6% to around $3,661, while Solana fell 9.4% to $170. Dogecoin declined by almost 8%, extending its monthly losses to more than 33%. The price movements forced exchanges to close positions across various leverage levels.
The price correction followed a build-up of over-leveraged long positions. Analysts stated that the market was not reacting to a change in sentiment but rather to excessive bullish exposure. The crash mirrored a similar selloff that occurred after new U.S. tariffs on Chinese goods last month.
Whale Short Positions Raise Insider Concerns
A large short position worth $750 million was opened hours before the market drop. Blockchain data tracked by @DeFiWimar showed that the wallet took large positions across Bitcoin, Ethereum, and Solana. The whale reportedly earned over $18 million in profits within 30 minutes of the crash.
Analyst Chad Steingraber shared screenshots on X showing short entries of over $150 million in Bitcoin and $42 million in Solana. These trades were placed before Bitcoin dropped below $108,000. He said, “This whale opened all these shorts just hours before the market dump.”
This activity raised questions in the trading community, with some suggesting that the trader may have had early warning of the decline. The setup resembled earlier events where large trades preceded market moves.
Bitcoin Breaks Key Support but May Hold Short-Term Zone
Bitcoin’s recent decline pushed it below several key support levels. On the daily chart, the price tested three lower zones and dropped liquidity beneath them. It briefly found support in a demand area that had held price during past corrections.
Short-Term Holder Realized Price is now around $113,000. This level has often acted as a break-even zone for recent buyers. If Bitcoin stays below this point, selling pressure may continue. However, holding near this zone could encourage accumulation by short-term traders.
On-chain indicators such as the STH and LTH MVRV ratios still show that Bitcoin is in a potential accumulation range. These metrics suggest price ranges of $160,000 to $200,000 may still be on the table later this cycle, according to historical data models.
Another Whale Bets on Crypto Rebound After Drop
While some traders closed positions, others took new entries. A second whale opened $34 million in long positions, according to analyst Ted Pillows. The wallet placed $18 million into Ethereum at $3,575 and $15.9 million into Bitcoin at $103,794.
These moves suggest some large holders expect the market to bounce from current levels. At the same time, Strategy disclosed in a recent SEC filing that it bought 397 BTC worth $45.6 million at an average price of $114,771.
The firm now holds over 641,000 BTC with a total cost basis of $47.49 billion. The company continues to pursue long-term Bitcoin exposure even as short-term volatility increases.
