Lead
Bitcoin briefly plunged to around $93,000, triggering a wave of liquidations totaling roughly $620 million across crypto derivatives markets. Market strategist Tom Lee suggested the move may be tied to financial strain at one or more major market makers, but characterized the turbulence as short-lived.
Key Developments
- Over the past 24 hours, about 151,646 traders were liquidated, with total liquidations near $619.34M.
- The largest single liquidation was a $30.60M
BTC-USDposition on Hyperliquid. - By side, liquidations over 24 hours broke down as:
- Longs: $396.30M
- Shorts: $223.04M
- Time-segmented liquidation totals:
- 1 hour: $2.79M (Long: $1.89M; Short: $904.49K)
- 4 hours: $15.34M (Long: $5.45M; Short: $9.89M)
- 12 hours: $250.85M (Long: $154.48M; Short: $96.38M)
- Among exchanges, Binance showed the largest liquidation volume at approximately $8.60M in the observed period.
Market Context
Lee said the sell-off bears the hallmarks of targeted pressure aimed at amplifying liquidations:
“Looks like one or two market makers have a hole in their balance sheet. Sharks are circling to trigger liquidations and crash the bitcoin price.”
He added the dynamic resembles a temporary drain on liquidity:
“If true, it's a kind of QT for the crypto market.”
Lee stressed that the dislocation appears short-term, urging traders to avoid excessive leverage and “not let yourself be liquidated.”
Rumors about market-maker difficulties have circulated since the October 10–11 downturn, although no confirmed evidence has emerged.
Market Impact
- The flash move to roughly $93,000 in Bitcoin price accelerated forced unwinds across leveraged positions.
- Liquidations were heavier on the long side over 24 hours, consistent with a rapid downside break that triggers margin calls on bullish bets.
- A single large liquidation on Hyperliquid and notable activity on Binance underscore concentrated stress points in derivatives venues.
Looking Ahead
If market-maker balance sheet pressures are indeed at play, near-term volatility could persist as liquidity thins during stress events. However, Lee’s view that the disruption is temporary suggests price action may stabilize once forced deleveraging runs its course and liquidity conditions normalize.