Bitcoin Falls Below $98K as $1B in Long Positions Liquidated Amid Asian Market Weakness

Bitcoin slipped under $98,000 for the first time since May on Friday, extending a week-long decline that has pressured major cryptocurrencies. The drop coincided with weaker-than-expected economic data from China, which sent Asian equities lower and fueled risk-off sentiment across crypto markets.

Ether fell more than 8% to around $3,500, while XRP, Dogecoin (DOGE), Solana (SOL), and Cardano (ADA) posted similar declines. Crypto tracked broader equity weakness as traders unwound leveraged positions and rotated into cash.

Liquidation data highlights the scale of the sell-off: over $1 billion in leveraged crypto positions were wiped out in 24 hours, including roughly $887 million from long positions. Approximately 235,000 traders were forced out, with the single largest liquidation a $44 million BTC long on HTX. Bybit, Hyperliquid, and Binance each recorded more than $180 million in long liquidations, representing over 85% of all bets and reflecting heavy exposure from last week’s bounce.

Market conditions ahead of the drop were fragile: funding rates had turned positive across majors, open interest was climbing, and spot volumes were thinning, creating an environment that often amplifies downside momentum. As BTC broke through $100,000, liquidity pockets evaporated, accelerating the slide toward $97,000.

Macro headwinds compounded the decline. China’s industrial production slowed to 4.9% year-on-year in October from 6.5% in September, while fixed-asset investment contracted 1.7% in the first ten months—a historic slump. The MSCI Asia Pacific Index dropped 1.3%, led by chipmakers, with weakness spilling rapidly into crypto, mirroring patterns seen throughout Q4.

Expectations for a December Federal Reserve rate cut also diminished after cautious remarks from officials. Money markets now price the likelihood of a cut below 50%, down sharply from earlier in the week, adding pressure on risk assets.

For crypto, the immediate focus is whether forced liquidations have run their course. BTC’s break below $98,000 shifts attention to support near $94,000, while altcoins remain vulnerable if equities continue to pull back. Structurally, liquidation-driven resets have often marked exhaustion zones—but the outlook depends on whether macro volatility stabilizes over the next 48 hours.