Bitcoin wobbles at $110K as trader says $20B liquidation rout not ‘bottom’
Bitcoin hovered around $110,000 after a massive wave of forced liquidations wiped out nearly $20 billion in leveraged crypto positions. The sharp downturn came as traders scrambled to unwind risk, triggering one of the largest market cleanups in recent months.
The sell-off was fueled by renewed U.S. China trade tensions, which rattled global markets and dragged equities lower. While some investors view the purge as a healthy reset, others warn the decline may not signal a final bottom, with liquidity still thin and sentiment fragile across digital assets.
Market Snapshot: BTC and Macro Cross-Currents
BTC price
Trading around $110K after printing multi-week lows; intraday ranges remained wide.Macro backdrop:
U.S. stocks logged their worst day since April as tariff rhetoric escalated; S&P 500 2.7%. Gold hovered near $4,000/oz amid safety bids.
Why Bitcoin wobbles at $110K matters for the cycle
Bitcoin’s slide coincided with a sharp de-risking in global markets after fresh tariff threats against China. Risk assets fell in tandem, while haven demand lifted bullion. In crypto, the move catalyzed one of the largest liquidation waves on record, flushing out leveraged longs and resetting funding/positioning.
Order flow, liquidations, and “crypto cleanse”: Bitcoin wobbles at $110K
Derivatives trackers showed ~$19–20B in liquidations over 24 hours, impacting more than 1.6M traders, with longs the majority. Spot order books leaned heavy on the offer near $120K, while downside bids thinned toward $100K, leaving price vulnerable to further probes before durable support forms. Traders on X framed the episode as a “cleanse” of late-cycle euphoria, especially in lower-quality altcoins.
Altcoins underperform as liquidity thins
Ex-BTC assets saw outsized drawdowns as spreads widened and market makers reduced exposure during the downdraft, a typical pattern during high-volatility episodes. The concentration of resistance overhead implies any rebound may be choppy until liquidity normalizes. Bloomberg
Context & Analysis
Renewed tariff threats have historically tightened global financial conditions, pressuring risk assets and amplifying crypto volatility. The liquidation magnitude suggests leverage was extended into resistance. While flushed positioning can precede strong rebounds, thin downside liquidity toward $100K raises the risk of under-shoots before a durable base forms. Near-term path likely depends on macro headlines and how quickly market depth returns.
Conclusion
Bitcoin’s struggle to mount a strong recovery has kept price action confined between the $100,000 and $120,000 range. The lack of momentum reflects cautious sentiment after the recent wave of liquidations and a broader pullback across risk assets.
With macroeconomic risks still high and leverage significantly reduced, traders anticipate a period of sideways, volatile trading. Many expect stability to return only once liquidity improves and new market catalysts such as policy clarity or institutional inflows begin to surface, helping restore confidence and direction in the crypto market.
FAQs
Q : What caused the latest Bitcoin drop?
A : Renewed U.S.–China tariff threats spurred broad risk-off moves and a cascade of crypto liquidations.
Q : How large were the liquidations?
A : Trackers reported roughly $19–20B in liquidations over 24 hours, affecting around 1.6 million traders.
Q : Is this the bottom?
A : Traders caution it may not be; liquidity remains thin toward $100K, and macro risks persist.
Q : Why is gold rallying?
A : A flight to safety pushed gold near $4,000 per ounce as equities declined.
Q : Where is resistance now?
A : Offers cluster around ~$120K on major venues, while support is patchy closer to $100K.
Q : What should traders watch next?
A : Funding rates, open interest, liquidation pace, and tariff-related headlines.
Q : Does “Bitcoin wobbles at $110K” imply a trend change?
A : Not necessarily; it signals a volatility pocket after leverage flushed out. Traders should monitor depth and flows for confirmation.
Facts
Event
Bitcoin stalls near $110K after record liquidation wave; traders warn not the bottomDate/Time:
2025-10-11T12:00:00+05:00Entities
Bitcoin (BTC), CoinGlass, S&P 500 Index (GSPC), XAU/USD (gold)Figures
~$19–20B crypto liquidations (24h); S&P 500 −2.7%; gold ≈ $4,000/oz; BTC key levels $100K–$120K.Bloomberg+2AP News+2Quotes
“The long-awaited crypto cleanse has begun.” traders on X (verification pending)Sources
Bloomberg “Crypto Sees More Than $6 Billion in Liquidations …” (coalescing to ~$19B, 24h) ; AP News U.S. stocks −2.7% S&P 500.AP News