Bitcoin price today plunged below the key $85,000 mark , shaking market sentiment and triggering a sharp wave of liquidations across crypto exchanges. The sudden drop pushed BTC down nearly 6% intraday, marking one of the steepest short-term corrections in recent weeks. $320 Million in Liquidations Rock the Market According to derivatives data, more than $320 million in crypto positions were liquidated over the past 24 hours, with Bitcoin accounting for the majority of wiped-out trades. Long positions made up over 80% of total liquidations, signaling that bullish traders were caught off guard by the rapid downturn. Liquidations occur when leveraged traders fail to maintain margin requirements, forcing exchanges to automatically close positions. This creates a domino effect — as prices fall, more positions are liquidated, accelerating selling pressure and deepening volatility. Why Did Bitcoin Fall Below $85K? Market analysts attribute the move to a mix of profit-taking near recent highs and broader macro uncertainty. After an extended rally, funding rates had climbed, signaling overcrowded long positions. The correction appears to have flushed excessive leverage from the system, resetting derivatives markets. Interestingly, on-chain metrics show limited movement from long-term holders, suggesting the sell-off was largely driven by short-term traders. Historically, Bitcoin has experienced similar 10-15% pullbacks during bullish cycles before stabilizing. Key support levels now sit around $82,000 and $80,000, with traders watching closely for either a rebound or further downside. Despite the sharp dip, volatility remains a defining trait of the crypto market — and rapid corrections often reshape sentiment just as quickly as rallies build it.
