🚨 URGENT: Why crypto got nuked
$BTC $ETH $SOL Mass sell-off happened because three shocks hit at once: macro risk-off, collapsing liquidity, and leveraged positioning that was too crowded long. Reuters and market desks flagged a global de-risking wave tied to tech valuation stress, AI-capex concerns, tariff/trade headlines, and uncertainty around the Fed path—crypto got treated like high-beta tech and got sold hard with everything else.
Then the liquidation engine took over. Once BTC cracked key levels, forced unwinds snowballed: Reuters reported about $2.5B in bitcoin liquidations in the volatility episode, and other market reports showed repeated $1B+ 24h liquidation windows. That is not discretionary selling—it is mechanical deleveraging, and it accelerates downside beyond what spot-only flow would do.
Third driver: thin order books / weak participation amplified every move. Reports showed global crypto turnover shrinking sharply (around $111B versus much higher prior peaks), meaning less depth to absorb large sells. In low-liquidity tape, support breaks faster, wicks get violent, and altcoins underperform as market makers widen risk. That’s exactly the “air-pocket” behavior traders saw this week.
The base case is continued high volatility with headline-driven squeezes until macro stabilizes and liquidity rebuilds. If risk assets stay fragile, BTC can retest the $60K zone (some analysts even cite $55K–$60K as stress range). If equities and risk sentiment stabilize, expect reflex rallies first, then trend confirmation only after sustained reclaim/hold of major resistance (around $70K+). Clear tactical target: downside watch $60K, upside trigger daily holds above $70K, extension target $78K if momentum persists.
#TradeWar