Crypto Markets Drop Sharply As Bitcoin Hits $109K And Liquidations Surge

(MENAFN- The Rio Times) The world's largest cryptocurrency endured another brutal trading session Thursday, with Bitcoin dropping to $109,054 as global uncertainty sent shockwaves through digital asset markets.

Within 24 hours, $162 billion disappeared from the total cryptocurrency market value, marking one of the most severe selloffs of 2025. The numbers tell a stark story of financial destruction.

Over 407,000 traders saw their positions eliminated, losing an average of $4,177 each as automated systems closed leveraged bets. Total liquidations reached $1.7 billion, creating a cascade effect that pulled down every major digital currency from Ethereum to Solana.

Behind the dramatic headlines lies a deeper shift in market dynamics. Large cryptocurrency holders, known as whales, have been quietly selling their positions since August.

These sophisticated investors have offloaded over 147,000 Bitcoin tokens worth approximately $16.6 billion, suggesting they anticipated the current weakness months ago.



The selling pressure coincides with growing institutional caution. Bitcoin exchange-traded funds recorded net outflows of $253.4 million Wednesday, with major asset managers like Fidelity and Bitwise seeing significant redemptions.

Only BlackRock's flagship Bitcoin fund attracted new money, pulling in $79.7 million while others hemorrhaged capital. Technical analysis reveals the breakdown of crucial support levels that had protected Bitcoin's price for weeks.

The cryptocurrency fell below $112,000, a threshold that traders viewed as critical defense against further declines. Trading charts now show the path clear toward the psychologically important $100,000 level, a milestone that could trigger additional selling if breached.

Global economic factors amplify the cryptocurrency selloff. Federal Reserve policy changes continue reshaping how investors view risky assets, while geopolitical tensions drive capital toward traditional safe havens like gold and government bonds.

The Global Liquidity Index, which tracks worldwide monetary conditions, shows divergence from Bitcoin 's price action, suggesting the selloff stems from crypto-specific rather than broader financial pressures.

Friday brings additional uncertainty with $22.6 billion in Bitcoin options set to expire. These financial contracts, which allow traders to bet on future price movements, often create volatility as their expiration approaches.

Market makers must adjust their positions, potentially amplifying price swings in either direction. The human cost extends beyond professional traders to everyday investors who embraced digital currencies during their meteoric rise.

Retail participants, often using borrowed money to amplify their bets, bore the brunt of Thursday's liquidations. Many discovered that leverage, which multiplies gains during rising markets, works equally efficiently in reverse.

Ethereum, the second-largest cryptocurrency , fell 2.57 percent to $3,914, failing to hold the psychologically important $4,000 level. Solana suffered worse, dropping 5.20 percent to $194 as investors fled riskier blockchain projects.

Even XRP, which recently gained approval for exchange-traded fund status, declined 4.01 percent to $2.74. Technical indicators suggest markets may have reached oversold conditions, potentially setting up a relief rally.

The Relative Strength Index, a momentum measure, approaches levels historically associated with price bounces. However, the breakdown of key support levels is a warning sign.

Any recovery may prove temporary without fundamental improvements in investor sentiment. The current selloff reflects broader questions about cryptocurrency's role during periods of global uncertainty.

Originally conceived as digital gold, Bitcoin has instead moved increasingly in lockstep with traditional risk assets like technology stocks. This correlation challenges the narrative that cryptocurrencies provide portfolio diversification during market stress.

Looking ahead, institutional capital flows will likely determine whether current weakness represents a temporary correction or the beginning of a more sustained decline toward the critical $100,000 support level.

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