Bitcoin has finally crossed the $100,000 mark, but not without chaos. In the last 24 hours, about 190,000 traders were liquidated, losing nearly $1 billion. It’s the biggest wipe-out since 2021, with short traders taking the hardest hit – around $836 million in losses, according to CoinGlass.
The milestone sparked a rush in long positions, but this could backfire. If Bitcoin dips below $100,000, nearly $2 billion in long trades could be liquidated. A fall to $98,000 may even trigger $3.45 billion in losses, raising fears of a long squeeze. This could send prices dropping faster due to panic selling.
Traders seem confident that Bitcoin will keep rising. CoinGlass reports that Bitcoin Futures Open Interest has hit a record $67.4 billion. That means more traders are using leverage to bet on Bitcoin’s rally. But this adds more risk. History shows that when Open Interest crosses $65 billion, a market correction usually follows.
Bitcoin is also making waves outside the crypto space. It briefly became the world’s fifth-largest asset, overtaking Amazon, with a market cap of $2.05 trillion. Big names are bullish too. Standard Chartered believes Bitcoin could hit $120,000 by the end of Q2.
For now, Bitcoin’s price surge is a landmark moment. But the massive bets and heavy leverage in the market suggest the ride could get bumpy. The coming days will test how strong Bitcoin’s momentum really is.
