"Bitcoin price hovered near $93,000 on Tuesday as the market continued to reel from thin liquidity, cascading leverage, and growing bearish conviction across key technical levels. The Bitcoin price traded near $94,000 at midday, up 1% in the past 24 hours, with a hefty $111 billion in trading volume. The asset now sits 1% below its weekly high of $93,669 and 4% above its weekly low of $89,368."
"What Søndergaard is pointing to is the wave of liquidations triggered after a fresh bout of trade jitters set off a historic rush to unwind bitcoin long positions. Investors shed roughly $19 billion in leveraged bets across major exchanges in less than a day - with some estimates putting the total closer to $30 billion. On that day, the bitcoin price dropped over 10%. It marked the largest bitcoin liquidation event on record."
""Market depth has fallen by roughly 30% since then, which means even modest selling pressure can move prices sharply. That's essentially why Bitcoin slipped below $90,000 today. When liquidity is this thin, it takes far less capital to push the market in either direction, and when you layer leverage on top, volatility becomes inevitable.""
Bitcoin traded near $93,000 to $94,000 with heavy $111 billion daily volume while global market capitalization rose to about $1.85 trillion and circulating supply reached 19,950,440 BTC toward the 21 million cap. Market depth fell roughly 30% after an October 10 liquidation event that triggered a historic unwind of longs and wiped out roughly $19–$30 billion in leveraged bets, causing a more than 10% price drop. Thin liquidity plus layered leverage has amplified volatility, making modest flows move prices sharply. Options data suggest a non-negligible chance of a dip to the mid-$80,000s, though stabilization near current levels remains plausible.
Read at Bitcoin Magazine
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