Bitcoin Drops Below $96K as $1B Liquidations Hit ETH, XRP, Dogecoin
Bitcoin's sell-off accelerated early Friday, pushing BTC down to about $96,000 as investors pulled money from spot ETFs and leverage unwound across the derivatives market. Roughly $1 billion in positions were liquidated across major altcoins including Ether, XRP and Dogecoin, amplifying volatility and driving the Crypto Fear and Greed Index to 22 — one of the lowest readings this year. The move underscores how ETF flows and concentrated leveraged bets can quickly cascade through spot and futures markets.
The slump matters because it tests liquidity depth ahead of potential macro catalysts and could prompt further margin-driven selling if outflows persist. Traders and risk managers will be watching ETF inflows/outflows, open interest and support near prior accumulation zones for signs of stabilization. For now, elevated volatility increases both downside risk and rapid re-entry opportunities for nimble participants, keeping short-term sentiment distinctly cautious.