Bitcoin’s decline leads to $811 million in losses as traders prepare for a $100,000 challenge.

Recently, Bitcoin briefly declined below $110,000, resulting in one of the largest liquidation events seen in a while.

According to data from Coinglass, crypto traders suffered losses totaling $811.6 million, with over 179,000 positions liquidated.

Discussing this significant liquidation wave, Sean Dawson, head of research at Derive.xyz, commented to CryptoSlate:

“This rapid shift seems to stem from overleveraged positions, especially following the recent spike in ETH, alongside a dip in the S&P 500 that affected risk assets more generally.”

Importantly, the largest single liquidation occurred with a BTC-USDT order valued at $39.2 million on HTX.

Long traders, who anticipated a price increase, suffered the most, losing $699.5 million, while shorts faced losses of $112.2 million. This imbalance indicates a miscalculation of the rally’s strength by traders, making them susceptible when prices retreated.

Bitcoin saw the most considerable losses, with more than $270 million lost in just one day. On Aug. 25, Glassnode highlighted that over $150 million in long positions was eliminated, marking one of the most significant flushes since December 2024.

Ethereum also faced significant liquidations totaling $266 million, predominantly from long bets. Other major cryptocurrencies like Solana, Dogecoin, and XRP experienced additional losses of $38.5 million, $18.8 million, and $17.3 million, respectively.

Bitcoin may fall to $100,000

Meanwhile, these substantial liquidations have contributed to an increasingly bearish sentiment among market participants, as indicated by data from Derive.xyz

The crypto derivatives trading platform reports that traders now estimate a 35% likelihood of Bitcoin dipping to $100,000 before the end of September, with a 55% probability that Ethereum could retrace back to $4,000.

Dawson mentioned that the 25-delta skew has become negative for both BTC and ETH, suggesting that traders are investing more in downside protection rather than potential gains.

As he noted:

“This signifies the highest demand for downside protection we’ve witnessed in two weeks. Traders seem to be preparing for possible retests of $4,000 for ETH and $100,000 for BTC.”

He also pointed out that macroeconomic challenges and volatility are dampening market outlooks, recalibrating risk appetites across the board.

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