Bitcoin Hits $100K—What Happens if It Falls Below $98K?

Bitcoin Hits- Shorts Crushed, Longs Next? Bitcoin Liquidation Fears Grow

Bitcoin Hits– The Bitcoin derivatives market is showing signs of overheating. According to CoinGlass, over 190,000 traders were liquidated in the past 24 hours, with losses nearing $970 million. Short positions took the brunt of the damage, accounting for $836 million of the total — the largest short liquidation event since 2021.

Yet, with short sellers cleared out, a new risk is emerging: an overconcentration of highly leveraged long positions.

A Long Squeeze Threat Looms

CoinGlass’s 24-hour liquidation map reveals that if Bitcoin dips below $100,000, up to $2 billion in long positions could be liquidated. A further drop under $98,000 might trigger a liquidation cascade worth as much as $3.45 billion.

This raises concerns about a potential long squeeze, where the mass unwinding of leveraged longs could accelerate a rapid selloff and intensify market volatility.

Open Interest Hits Record High

Supporting the cautious sentiment, Bitcoin Futures Open Interest (OI) has reached a new record of $67.4 billion. This surge reflects growing demand for short-term leveraged trading, but it also increases downside risks. Historically, when OI has exceeded $65 billion, Bitcoin has often faced sharp corrections shortly after.

Bitcoin’s Market Influence Grows

Despite volatility concerns, Bitcoin continues to break barriers. It recently overtook Amazon to become the fifth-largest asset globally with a market cap of $2.05 trillion. Meanwhile, Standard Chartered forecasts the price could reach $120,000 in Q2, though such predictions should be viewed cautiously.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.