Bitcoin has experienced a sharp decline, sliding below $105,000 following a major wave of liquidations across the crypto market. This recent drop was triggered by over $1.3 billion in leveraged positions being wiped out, impacting not only Bitcoin but also other major cryptocurrencies. As the liquidation wave accelerated, many traders saw their long bets forcefully closed, exacerbating the sell-off and deepening market losses.

Sentiment across the broader crypto space has turned cautious, reflecting heightened volatility and fear among investors. Bitcoin’s price plummeted from recent highs, breaking through critical support levels as selling pressure intensified. Analysts point to a combination of factors including market overleveraging and a sudden loss of bullish momentum as primary drivers behind this sharp correction.

The current environment underscores the risks associated with highly leveraged trading in digital assets. With the Fear & Greed Index plunging to its lowest point since April, the market appears to be in a state of extreme fear. This period of elevated uncertainty serves as a reminder for traders and investors to manage risk carefully and stay alert to further volatility as the crypto market seeks new levels of stability.