Market Overview - Crypto markets are experiencing significant pressure, with Bitcoin dropping below $112K and currently trading at $112,660, leading to a total market cap of $3.9 trillion [1] - Over the last 24 hours, more than 402,000 traders were liquidated, resulting in $1.7 billion in losses, predominantly from long positions which accounted for $1.62 billion [1][2] Liquidations and Token Unlocks - The recent selloff is attributed to upcoming token unlocks worth over $517 million in the next week, raising concerns about additional selling pressure [2] - Liquidations and token unlocks are the primary factors behind the immediate market crash, compounded by macroeconomic uncertainties affecting market sentiment [3] Institutional Demand - Despite the downturn, there has been a notable inflow of $163 million into U.S. Bitcoin spot ETFs, indicating that institutional demand remains strong [3] Price Levels and Market Sentiment - Bitcoin is currently testing the critical support level at $112K; failure to maintain this level could lead to a drop to $108K or even $100K, while reclaiming $117K could allow for a push towards $123K [4] - Ethereum is also under scrutiny as traders monitor its ability to stabilize above $4,000 following its recent decline [4] Investment Opportunities - For long-term investors, current dips may present opportunities to buy top cryptocurrencies like BTC, ETH, and SOL, although near-term volatility is expected as the market adjusts to liquidations and supply shocks from token unlocks [5]

$1.7 billion in liquidations sweep crypto markets over past day as bitcoin slide sparks broader selloff https://t.co/nA4iUTrkSH ...

💥BREAKING:$ASTER LIQUIDATIONS OVERTAKE $BTC AND $ETH LIQUIDATIONS. https://t.co/M3IeKY7AqW ...

🚨 JUST IN: $100 MILLION Bitcoin and crypto liquidations within 1 hour of the Fed’s rate cut decision https://t.co/Mfj9yE5F2V ...

Market Sentiment - Short positions are paying -0.02% funding to long ETH [1] - Perpetual contracts are trading $12 below spot price [1] - Market makers are subsidizing long positions [1] Liquidation Levels - $6.2 billion in liquidations are stacked at $5,000 for ETH [1] Trading Activity - Traders are continuing to add to short positions [1]

💥BREAKING:$WLFI LIQUIDATIONS OVERTAKING $BTC AND $ETH LIQUIDATIONS. https://t.co/q3KW764XP0 ...

RT Ammalgam Intern (@ammalgam_intern)When markets crash, DeFi often breaks into cascading liquidations.One position falls, the whole protocol spirals.Here’s how Ammalgam’s risk engine fights back. 🧵 https://t.co/ZtYbydtdLI ...

💥BREAKING:$WLFI LIQUIDATIONS FLIP $BTC LIQUIDATIONS. https://t.co/IkLPnopF11 ...

Platform Stability & Security - Hyperliquid platform functioned normally with no bugs or exploits, and no bad debt [1] - XPL market remained isolated [1] Risk Management & Liquidation - Heavy liquidations occurred on $XPL and $WLFI [1] - Mark price of hyperps will be capped at 10x the 8-hour mark price EMA [1] - This change aims to provide a guarantee for Market Makers [2] Planned Upgrades - A hard cap on pre-market prices is planned [1] - Integration of external market data from other pre-launch venues is planned [1]

Trillions (in liquidations of hedgoooooooors) ...