Data from analytics platform CoinGlass showed that more than $1.27 billion worth of leveraged crypto positions were liquidated earlier in the week, with most losses hitting long traders who had bet on further price gains
Bitcoin, the world’s largest cryptocurrency, extended its recent slide on Wednesday, briefly plunging below the crucial $100,000 mark in what analysts describe as a symptom of broader weakness across global financial markets. The dip highlights the growing anxiety among investors as risk appetite fades and speculative assets face a sharp correction after months of surging valuations.
According to market data, Bitcoin dropped 3.7 per cent to $101,822 after touching an intraday low of $99,010.06 — its weakest level since mid-June. The fall officially places the cryptocurrency in bear market territory, having now declined more than 20 per cent from its all-time high of $126,186, reached in early October.
Other major cryptocurrencies also tumbled. Ethereum lost 6.76 per cent to trade at $3,331.65, while Solana was down 3.16 per cent at $157.66. XRP fell 3.16 per cent to $2.24, and Dogecoin slipped 1.47 per cent to $0.165. The widespread decline underlined a larger trend of risk aversion among traders as the global sell-off gathered pace.
Analysts pointed to a combination of factors driving the downturn — from overextended valuations in both crypto and tech stocks to growing unease about the sustainability of recent gains fueled by artificial intelligence optimism. “This correction reflects a broad shift in sentiment. Investors are now prioritising capital preservation after months of speculative exuberance,” said a Mumbai-based crypto strategist.
Data from analytics platform CoinGlass showed that more than $1.27 billion worth of leveraged crypto positions were liquidated earlier in the week, with most losses hitting long traders who had bet on further price gains. In total, nearly $2 billion in crypto positions were wiped out in the past 24 hours — though the figure remains far below the $19 billion liquidation event seen during last month’s crash.
Meanwhile, open interest in Bitcoin futures has remained subdued, suggesting reduced speculative activity, while options traders have increasingly taken bearish positions, some targeting the $80,000 level through put contracts.
The sell-off in crypto closely mirrored declines in global equity markets. On Wall Street, the Dow Jones Industrial Average fell 251.44 points, or 0.53 per cent, to 47,085.24. The S&P 500 shed 80.42 points, or 1.17 per cent, to close at 6,771.55, while the tech-heavy Nasdaq Composite dropped 486.09 points, or 2.04 per cent, to 23,348.64.
Market watchers said the synchronized decline reflects deepening investor concern about an AI-driven bubble in technology valuations, coupled with expectations of tighter financial conditions.
“Both equities and crypto are experiencing fatigue after a long rally,” said a Singapore-based market analyst. “The fear now is that the correction could deepen before stabilizing, especially if macroeconomic data turns weaker.”
While some long-term investors view the dip as a potential buying opportunity, others caution that volatility could persist until sentiment improves across risk assets.
