$812M Wiped Out as Bitcoin Crashes Below $110K, Did Traders Ignore the Warning Signs?

$812M Wiped Out as Bitcoin Crashes Below $110K, Did Traders Ignore the Warning Signs?

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Golden palm tree sculpture and glass cup on trading desk with glowing red Bitcoin crash charts and $812M hologram, symbolizing market wipeout as BTC falls below $110K

Table of Contents

Didn’t See This Coming? We Did

Key Highlights

• Over $812M in leveraged positions liquidated as Bitcoin broke below $110K.

• Ethereum bore the brunt with $320M in forced unwinds, amplifying the panic.

Yello Paradisers! What happens when Bitcoin dips below $110K and traders keep piling on leverage like it’s a free buffet? Exactly this: over $812M liquidation bloodbath. Markets didn’t just wobble, they were gutted overnight. BTC cracked, ETH stumbled harder, and altcoins got dragged into the undertow. The big question now is whether this is the beginning of a storm, or just the clean-out before the next leg higher.

We warned on our recent YouTube stream that if Bitcoin failed to break resistance, the liquidation clusters sitting beneath would get vacuumed. That’s precisely what happened. ParadiseFamilyVIP and MCP News Private members were already positioned with a playbook for this scenario, the kind of preparation that separates survivors from casualties.

Why $110K Was the Domino

Numbers aren’t just numbers in trading; they’re emotional tripwires. $110K wasn’t a random level, it was the line where systematic algos, margin traders, and volatility sellers all agreed to start dumping. Once the market dipped into the high-$109Ks, the reflex was instant: cascading liquidations, margin calls, and a vacuum effect that wiped nearly a billion dollars in hours.

Think of it like a nightclub fire alarm. Nobody waits to walk calmly out; everyone rushes the exit at once. That’s why price collapsed harder than fundamentals alone would justify.

Macro Squeeze Meets Fragile Liquidity

The bigger backdrop didn’t help. Spot Bitcoin and ETH ETFs have been bleeding capital, draining the steady bid that cushioned prior dips. Options desks were already pricing in bigger swings, and order books were thinner than usual. In that environment, even modest flows move like a wrecking ball.

We flagged this fragile liquidity in our stream, that the “thin ice” effect makes small cracks catastrophic. And sure enough, the ice just broke.

What Traders Are Saying

Options traders had already started buying downside protection, a classic sign the market smelled trouble. Desks described this move as “overleveraged positioning meeting bad macro at 3 a.m.” ETH’s rapid unwind confirmed it, $320M gone in hours.

As one of the ParadiseTeam members put it for the Private News members, crypto didn’t collapse in a vacuum. The S&P 500’s overnight dip poured gasoline on the fire.

What’s Next on the Watchlist

Eyes are now locked on the $105K–$100K zone for Bitcoin. Break below $105K, and the market will likely probe $100K just to see where the real buyers live. On the flip side, if ETF flows flip back to inflows or macro cools, this sell-off could become the kind of “shakeout” that fuels a violent rebound.

Our analysts will break down these next levels live in our upcoming YouTube stream, and MCP News Private ($3/month, less than a parking fee in London) will provide the deeper playbook with real-time reactions. If you were caught off guard this time, don’t let it happen twice.

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