Bitcoin Price Drop: Futures Liquidations, Not Spot Sales, Were the Main Cause

The price of Bitcoin (BTC) continues to fall, reaching below $85,000, causing massive liquidations in the cryptocurrency market. Analysts claim that this collapse is not related to massive spot sales, but rather is a consequence of cascading liquidations of leveraged positions on futures. According to CryptoQuant data, the sharp price drop coincided with a surge in long position liquidations, indicating a movement driven precisely by liquidations. The root of the problem is the accumulation of highly leveraged long positions on futures markets, which violate margin requirements when the price falls below key levels, leading to forced closures.

In the last 24 hours, Bitcoin fell below $85,000, resulting in the liquidation of nearly $600 million in long positions across crypto markets. This drop stands apart from previous sell-offs, as it is driven by positions in spot and derivative markets, not forced sales. Experts highlight five key reasons: global macro risks, deleveraging, thin liquidity, as well as technical factors such as thin order books on weekends and excessive leverage in the system.

On the X platform, traders and analysts are actively discussing this situation. One user noted that a $5,000 drop in three hours wiped out $210 billion from the market and liquidated $700 million, without obvious FUD or macro events – it's just "leverage cleansing." Another post emphasizes that when leverage meets reality, the drop is not related to Bitcoin's fundamental factors, but to macro changes such as rising bond yields and slow liquidity inflows from the Fed. Additionally, open interest on Bitcoin futures fell by 35% over six weeks, from $92 billion to $59 billion, which is the largest drop in history, signaling a market reset.

Analysts from Phemex confirm that the Bitcoin price drop is mostly driven by liquidations of leveraged positions, while spot sales played a minimal role. This is not a crash in fundamental demand, but rather a structural deleveraging process. After clearing leveraged positions, the price often stabilizes. However, considering macro pressures such as shifts in Fed policy and global risks, analysts warn that the sell-off may continue.

In the context of 2025, Bitcoin has already reached a low of around $74,400 in Aprildue to President Trump's tariff plans, but the current drop underscores vulnerability to leverage and macro factors. Traders are advised to adapt to an environment of low liquidity and high risk of cascading liquidations to avoid losses.