Bitcoin Spikes to $106K Then Drops to $103K, Liquidating Over $600M in Crypto Positions

What to Know

• Bitcoin surged past $106,000 but quickly dropped to $103,000, leading to over $600 million in liquidations across crypto.
• Over $460 million in long positions and $220 million in shorts were wiped out in major cryptocurrencies including ETH, SOL, and DOGE.
• The price move stemmed from a short squeeze followed by profit-taking, amplified by low weekend liquidity.
• Solana, Dogecoin, and XRP are all down more than 4%, while the broader crypto market also dipped.
• Moody’s downgrade of the U.S. credit outlook and rising Treasury yields add pressure to risk markets.
• Traders remain cautious, anticipating continued volatility amid uncertainty over U.S. fiscal policy and global macroeconomic trends.

Bitcoin (BTC) shocked the market this weekend with a sudden price surge to $106,000, only to tumble back to $103,000 shortly after. The volatile price action triggered mass liquidations, wiping out over $600 million in crypto derivatives positions across Bitcoin and altcoins like Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE). Both bullish and bearish traders were caught off guard, illustrating how unpredictable the current crypto market remains.

The sharp price move began late Sunday night around 21:00 UTC, when Bitcoin suddenly spiked by over $2,500 within an hour. Analysts attributed the move to thin weekend liquidity, technical level triggers, and a classic short squeeze — a scenario in which short sellers are forced to buy back their positions as prices climb, accelerating the rally even further.

But the excitement was short-lived. After touching $106,000, Bitcoin faced immediate selling pressure, causing the price to drop back to the $103,000 mark. This rapid reversal led to $460 million in long position liquidations and another $220 million in shorts being wiped out, impacting futures traders across multiple assets.

The sudden move didn’t just affect Bitcoin. Ether (ETH), Solana (SOL), and Dogecoin (DOGE) also saw aggressive price swings, with SOL, DOGE, and XRP falling more than 4% over the last 24 hours.

What Triggered the Price Whiplash?

The catalyst behind the volatility appears to be a mix of technical market factors and broader macroeconomic concerns. The initial rally resembled a classic short squeeze, where stop-loss triggers and algorithmic buying drove prices higher in a thin liquidity environment.

This was followed by a wave of profit-taking or stop-runs, causing the abrupt reversal. The price swing occurred during a traditionally quiet period in the market — weekend hours — which typically see lower trading volumes and thinner order books, making the market more susceptible to large moves from institutional or algorithmic traders.

Macroeconomic Headwinds Add to Uncertainty

The broader financial landscape added fuel to the fire. On Friday, Moody’s downgraded the U.S. credit outlook, citing concerns over rising debt levels. This move pushed the 30-year U.S. Treasury yield above 5%, sparking new fears about inflation and long-term borrowing costs.

While crypto markets have recently benefited from renewed institutional interest and the momentum around spot Bitcoin ETFs, these macro headwinds are tempering investor enthusiasm at key price levels. Bitcoin remains flat over the past seven days, and the failure to sustain above $106,000 — a critical psychological and technical level — is being closely watched by analysts.

More Volatility Ahead?

With macroeconomic pressures intensifying and key resistance levels holding firm, the crypto market appears poised for continued turbulence. Bitcoin’s failure to sustain above $106,000 highlights ongoing market fragility and suggests that bullish momentum may not be as solid as it seems.

Meanwhile, traders are navigating a landscape shaped by rising Treasury yields, credit uncertainty, and cautious sentiment around U.S. fiscal policy. Any fresh economic data or geopolitical headlines in the coming days could trigger another round of sharp price swings — especially in a market where leverage remains high and liquidity can vanish quickly.

As Bitcoin hovers just below recent highs, both retail and institutional investors should brace for heightened volatility. Whether you’re long or short, risk management will be crucial in this environment.