CRYPTO MARKET SHAKEN

CRYPTO MARKET SHAKEN: BITCOIN AT $85K SPARKS $550M IN ALTCOIN LIQUIDATIONS

ByMolly McNearney

Crypto markets faced a sharp downturn on Thursday afternoon as Bitcoin (BTC) slipped below a critical support level, dragging altcoins down and triggering significant liquidations across derivatives platforms.

Bitcoin Dips Below Key Support

Bitcoin fell to $84,500, its lowest in nearly three weeks, after losing the important $85,000 support. The move erased an earlier intraday rally that had pushed BTC to $89,500, highlighting renewed selling pressure in the market.

Analysts emphasize that the $85,000 level had been a key support zone, repeatedly attracting buyers over recent weeks. A decisive break below this point could open the path for BTC to retest lower levels around $80,000, signaling a potential deeper correction.

Altcoins Lead the Selloff

While Bitcoin slipped 1.6% in the past 24 hours, altcoins suffered sharper losses:

  • Ether (ETH): Fell 1.1% to below $2,800.
  • Solana (SOL): Dropped 4% to under $120, its lowest level since April.
  • Cardano (ADA), Dogecoin (DOGE), and Sui (SUI) plunged over 5%, outpacing Bitcoin’s decline.

The heavy losses in altcoins suggest that leveraged positions and short-term speculative trades were significantly impacted.

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Liquidations Hit $550 Million

Data from CoinGlass shows that the sharp price moves triggered approximately $550 million in liquidations over the past 24 hours, affecting both long and short leveraged positions.

Perpetual swaps markets indicate that funding rates for many altcoins have turned negative. This means short positions are paying long positions to keep trades open, reflecting cautious sentiment and a risk-off mood among traders.

Analysts from AmberData noted that the absence of a spike in trading volume suggests the market is undergoing orderly deleveraging rather than panic selling. “Lack of volume spike on selloff indicates sellers exhausted rather than fresh supply emerging,” they said.

Market Sentiment and Outlook

Despite the sharp pullback, the crypto market does not yet show signs of a broader panic. The controlled liquidation process and continued presence of buyers at key support levels indicate that the market may stabilize before attempting any recovery.

Traders will now be closely watching Bitcoin’s ability to reclaim the $85,000–$86,000 range. A sustained move above this zone could restore confidence, while failure to hold support could push BTC closer to $80,000, potentially dragging altcoins further down.

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Summary

Bitcoin fell from $85,000 to $84,500, erasing earlier gains.

  • Altcoins like ETH, SOL, ADA, DOGE, and SUI suffered heavier losses, with some dropping over 5%.
  • The drop triggered $550 million in liquidations, mainly affecting leveraged derivatives.
  • Funding rates for altcoins turned negative, showing risk-off sentiment.
  • Analysts view the selloff as orderly deleveraging, not panic, but caution persists for BTC and altcoins.
FAQs

Q1: Why did Bitcoin fall below $85,000?

A1: BTC broke a critical support level, ending its morning rally and triggering sell-offs in both Bitcoin and altcoins.

Q2: How much was liquidated in the crypto markets?

A2: Approximately $550 million in leveraged positions was liquidated over the past 24 hours.

Q3: Which altcoins were most affected?

A3: Altcoins like SOL, ADA, DOGE, and SUI experienced losses of over 4–5%, outpacing Bitcoin’s 1.6% drop.

Q4: What do negative funding rates mean?

A4: Negative funding rates indicate short positions are paying long positions to keep trades open, signaling caution among traders.

Q5: Is this a panic sell-off or a normal correction?

A5: Analysts suggest this is an orderly deleveraging rather than panic selling, as there was no spike in trading volume despite price declines.

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