Bitcoin Loses $106K as Bullish Crypto Bets Rack up $800M in Liquidations

Core Insights - Bitcoin dropped below $106,000, resulting in nearly $1.2 billion in liquidated crypto positions over the past 24 hours, primarily affecting long positions [1][2] - Approximately 79% of total liquidations were long trades, impacting over 307,000 accounts, with the largest single liquidation being a $20.4 million ETH-USD long on Hyperliquid [2] - Bitcoin losses accounted for roughly $344 million, followed by Ether at $201 million and Solana at $97 million, with other high-beta tokens also experiencing significant losses [3] Market Activity - Hyperliquid led the exchanges with $391 million in activity, followed by Bybit at $300 million, Binance at $259 million, and OKX at $99 million, indicating a blend of on-chain and traditional trading platforms during market resets [4] - Liquidations occur when traders using borrowed funds cannot meet margin requirements, leading to forced closures that can trigger cascading sell-offs, known as "liquidation loops" [5] Market Context - Bitcoin's decline began late Thursday as it fell below the $107,000 level, causing forced closures in derivatives markets amid a tense macroeconomic backdrop, including renewed U.S.-China tensions and fluctuations in currency and commodity prices [6]