"The market's recent behaviour reflects a broad process of forced leverage unwinding amid heightened uncertainty, particularly as trade tensions between Washington and Beijing show no signs of stabilizing. Bulls seem increasingly reluctant to step in and absorb risk, fearing further shocks in an environment where volatility and policy unpredictability dominate. The lack of confidence has amplified the bearish sentiment, reinforcing the view that current weakness is not just about fundamentals, but also about liquidity pressure and sentiment deterioration."
"Data from CoinGlass shows another wave of massive liquidations sweeping the crypto derivatives market. Nearly $230M dollars in long positions were liquidated today, following more than $536M dollars yesterday. Both Bitcoin and Ethereum each saw over 100 million dollars worth of long positions wiped out in that yesterday. Such multi-hundred-million-dollar liquidations have now become almost routine in the crypto space, highlighting how vulnerable leveraged traders remain when volatility accelerates."
"The total crypto futures open interest has now fallen for the third consecutive day, dropping from $167B on Monday to below $158B today. The contraction signals not only deleveraging but also declining market participation, as traders either close positions or get forced out amid cascading margin calls. The shrinking open interest adds another layer of weakness, with fewer players left to absorb sharp moves or stabilize the market's direction."
Bitcoin fell below $107,000 to its lowest level since July and is testing support near $105,000 with the risk of returning to $100,000. Altcoins dropped faster, with Ethereum under $3,800. Selling pressure and forced deleveraging continued across major coins, driven by heightened uncertainty and trade tensions between Washington and Beijing. Bulls remained reluctant to absorb risk amid volatility and policy unpredictability, worsening sentiment and liquidity pressure. CoinGlass reported nearly $230 million in long liquidations today after over $536 million yesterday, and futures open interest fell from $167B to below $158B, signaling reduced market participation.
Read at London Business News | Londonlovesbusiness.com
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