The cryptocurrency market experienced a dramatic reversal just hours after Bitcoin’s historic breakout above $100,000. After reaching an all-time high of $104,088 on March 6, 2025, Bitcoin swiftly reversed course, plunging below the six-figure threshold and briefly flashing down to $90,500 in early trading hours. The sharp selloff triggered widespread liquidations across leveraged positions, affecting both bulls and bears in what traders are calling a “long-short squeeze.”
Ethereum wasn’t spared either, with ETH dipping below $3,700** to a low of **$3,677 before staging a partial recovery. As volatility spiked across digital assets, over 211,000 traders were liquidated within 24 hours, with total losses exceeding $1.08 billion, according to data from Coinglass.
This sudden downturn highlights the fragile nature of sentiment in crypto markets—even during record-breaking rallies.
Bitcoin’s Historic High Fades Fast
Bitcoin’s ascent to $104,088 marked a psychological milestone for the asset class, symbolizing growing institutional adoption and macroeconomic confidence in decentralized finance. However, the euphoria was short-lived.
By late evening on March 6, price momentum began to wane. Sellers emerged aggressively around $102,000, accelerating the descent. The drop intensified overnight, breaking through key support levels at $98,000 and $95,000. At approximately 4:00 AM UTC on March 7, the market saw a **flash crash** to **$90,500**, likely exacerbated by algorithmic trading and cascading margin calls.
While price has since rebounded to hover near $96,377, the near-13% intraday swing underscores how rapidly conditions can shift—even in bull markets.
Such volatility is not uncommon during major breakouts. Traders often take profits aggressively after psychological barriers are breached, especially when leverage is involved. This time, however, the correction caught many off guard due to the speed and depth of the drop.
Ethereum Follows Suit With Sharp Pullback
As Bitcoin led the retreat, altcoins followed suit—with Ethereum seeing one of the most notable dips. ETH had been trading above $3,800 prior to the crash but quickly lost ground as risk appetite evaporated.
At its lowest point, Ethereum touched $3,677**, briefly threatening the $3,600 support zone. It has since recovered to $3,825, posting a modest 24-hour loss of 0.5%**—a relatively resilient performance compared to more speculative altcoins.
Still, the dip highlights Ethereum’s sensitivity to Bitcoin’s price action and broader market sentiment. With ongoing developments in Layer 2 scaling and growing interest in restaking protocols, ETH fundamentals remain strong. Yet short-term price movements continue to be driven by macro flows and trader psychology.
Over $1 Billion in Liquidations—Who Got Wiped Out?
The most striking impact of this sudden reversal was the wave of forced liquidations across centralized and decentralized exchanges.
According to Coinglass data:
- Total liquidations in 24 hours: $1.08 billion
- Long positions liquidated: $812 million (75%)
- Short positions liquidated: $270 million (25%)
- Number of traders liquidated: Over 211,000
This rare “double squeeze” scenario—where both longs and shorts get caught in rapid price swings—demonstrates the dangers of excessive leverage in highly volatile markets.
Longs were caught off guard by the sudden reversal after celebrating the $100K breakout. Meanwhile, shorts who tried to bet against the rally were crushed during initial spikes and again during partial rebounds.
👉 See how real-time risk management tools help traders avoid devastating liquidations.
Retail traders accounted for a significant portion of losses, particularly those using high-leverage perpetual futures contracts. Automated stop-loss mechanisms and margin calls triggered a domino effect that amplified selling pressure.
Why Did This Happen? Possible Catalysts Behind the Crash
While no single event has been confirmed as the trigger, several factors may have contributed:
1. Profit-Taking After ATH Breakout
After years of anticipation, breaking $100K created a natural profit-taking opportunity. Large holders (whales) may have sold portions of their holdings to lock in gains.
2. Derivatives Market Imbalance
Before the drop, long positions dominated futures markets with high open interest. Such imbalances often attract “long squeezes,” where exchanges or whales trigger stop-losses to force liquidations.
3. Macro Uncertainty
Despite strength in crypto markets, global macro indicators remain mixed. Concerns about inflation, interest rate policy shifts, and geopolitical tensions may have prompted some investors to de-risk.
4. Algorithmic Trading & Flash Crashes
Thin liquidity at extreme price levels can lead to exaggerated moves. A large sell order—or series of automated trades—could have initiated a cascade effect across exchanges.
FAQ: Understanding Today’s Market Move
Q: Was Bitcoin really above $100,000?
A: Yes. On March 6, 2025, Bitcoin reached an intraday high of $104,088 across major exchanges before reversing sharply.
Q: What caused the sudden drop?
A: While no official cause has been identified, likely factors include profit-taking after the milestone breakout, derivatives market imbalances, and algorithmic trading amplifying downward momentum.
Q: Is this the end of the bull run?
A: Not necessarily. Sharp corrections are common after major breakouts. Many analysts believe the broader trend remains bullish if key support levels hold.
Q: Why did both longs and shorts get liquidated?
A: Rapid two-way volatility—sharp drops followed by rebounds—can trigger stop-losses on both sides. This “double squeeze” is typical during flash crashes.
Q: How can I protect my positions from similar events?
A: Use conservative leverage, set realistic stop-losses away from volatile zones, monitor funding rates, and diversify exposure across asset classes.
Q: Will Ethereum recover quickly?
A: Given its strong fundamentals and active development ecosystem, many expect ETH to rebound as market stability returns—especially with upcoming protocol upgrades.
Key Takeaways for Investors
- Volatility is inherent: Even in bull markets, extreme moves can occur with little warning.
- Leverage is risky: High-margin trading magnifies gains but also increases liquidation risk during sharp reversals.
- Diversification matters: Spreading risk across assets and strategies can help weather sudden drawdowns.
- Stay informed: Monitoring on-chain metrics, funding rates, and macro trends helps anticipate potential turning points.
👉 Access advanced analytics and real-time alerts to stay ahead of market turns.
Final Thoughts
The flash crash from $104K to $90.5K serves as a powerful reminder: in crypto, euphoria can quickly turn into panic. While fundamentals for Bitcoin and Ethereum remain robust—with adoption growing globally and technological innovation accelerating—short-term price action will always be influenced by emotion, leverage, and liquidity dynamics.
For long-term holders, this may present a buying opportunity. For active traders, it’s a lesson in risk management and timing.
As the market stabilizes, eyes will be on whether Bitcoin can reclaim $100K—or if further consolidation lies ahead.
Core Keywords:
Bitcoin crash, Ethereum price drop, crypto liquidation, BTC flash crash, leveraged trading risks, cryptocurrency volatility, market correction 2025