Crypto Liquidations Top $1.2B: Bitcoin Flash-Crashes from $108K to $105K

Over $1.2 billion in crypto positions were liquidated in 24 hours, triggering a sharp Bitcoin flash crash from around $108,000 to $105,000 within an hour. The sell-off underscores growing volatility and marks one of the largest liquidation waves of Q4 2025.

Market Impact: A $1.2 Billion Liquidation Cascade

According to on-chain and derivatives data from Futunn and CoinGlass, the market experienced a $1.2 billion liquidation event over the last 24 hours — with over 70% of positions being longs.
Bitcoin led the sell-off, falling 2.8% in a single hour, while Ethereum, Solana, and Dogecoin also faced double-digit leverage unwinds.

“The speed of this liquidation wave resembles mid-cycle stress events rather than a healthy correction,” one analyst from CryptoQuant explained.

The event reflects heightened speculative exposure after Bitcoin’s recent rally above $108K — a level that attracted heavy leverage from both retail and institutional traders.

Whale Activity and Institutional Flow

Whale behavior mirrored defensive positioning. Arkham Intelligence tracked large outflows from Binance and Coinbase wallets, totaling nearly 9,000 BTC within 12 hours of the drop.
Meanwhile, derivative funding rates turned negative across major exchanges, signaling a temporary shift to short-dominant sentiment.

Institutional flows via Bitcoin ETFs also reflected short-term hesitation. BlackRock’s iShares Bitcoin Trust reported reduced inflows for two consecutive days — its first pullback in three weeks.

This combination of whale hedging and ETF stagnation paints a cautious near-term outlook for the flagship cryptocurrency.

Technical Setup: Support Levels Under Pressure

Bitcoin crash to $105K placed it at a critical structural support zone visible on the TradingView BTC/USD daily chart.
If this level fails, analysts identify the next demand zones between $101K and $98K, coinciding with the 50-day moving average and Fibonacci retracement levels.

“The $105K area is the pivot — losing it could trigger deeper stops, but holding it revalidates the ongoing bullish structure,” said ITB Forex Broker analysts.

Short-term RSI dropped to 41, showing that the market is neither oversold nor stabilized, leaving room for additional volatility before recovery.

Macro Context: Fed Signals Add Fuel to Fear

The flash crash coincided with macro commentary from Federal Reserve Chair Jerome Powell, who stated that another rate cut “is not guaranteed” — dampening investor confidence.
Markets immediately reacted with a spike in the U.S. Dollar Index (DXY) and treasury yields, tightening liquidity across risk assets, including cryptocurrencies.

This marks the third time in 2025 that a Bitcoin correction aligned with Fed-related announcements — reinforcing the asset’s growing sensitivity to macroeconomic narratives.

Long-Term Outlook: Correction or Structural Shift?

While liquidation waves often spark panic, historical patterns show they frequently reset leverage and pave the way for new uptrends.
Long-term holders remain largely unfazed; Glassnode data shows that wallets holding BTC for over 6 months continue accumulating, suggesting conviction remains intact.

As institutional flows stabilize and volatility cools, Bitcoin’s resilience around $100K will determine whether this is a temporary correction or a structural top in the cycle.

“The next 72 hours will tell us whether Bitcoin shakes off the fear — or enters consolidation mode toward $98K,” said BTCNews.space analysts.

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