Bitcoin Crashes Below $118K: $1B Liquidations Trigger Market Panic

Blood in the crypto streets as Bitcoin plunges through $118K support.

### The Domino Effect: How $1B in Liquidations Spooked the Market

Exchanges saw cascading sell-offs after leveraged positions got wrecked—classic crypto volatility at work. Meanwhile, traditional finance bros clutch their pearls and whisper 'I told you so' over martinis.

### The Silver Lining Playbook

History shows these shakeouts create prime buying opportunities—for those with steel nerves. Remember: The market takes the stairs up and the elevator down.

But while Bitcoin’s short-term outlook is under scrutiny, attention is turning toward bitcoin Hyper – a new Solana-based Layer 2 project that merges Bitcoin’s decentralization with lightning-fast speeds and near-zero fees. 

As BTC faces volatility, Bitcoin Hyper’s presale is gaining momentum, raising over $9.6 million and drawing in early adopters who want exposure to the next evolution of Bitcoin utility. For some, it’s not just about holding – it’s about moving forward.

Bitcoin’s Drop Breaks Support – And Sentiment

After surging as high as $122,000 earlier in the week, Bitcoin lost nearly $4,500 in value within a single trading day, falling to a 24-hour low of $117,773. The breakdown beneath the psychologically significant $118K level marked one of the most aggressive intraday reversals this month. 

Analysts had previously flagged that level as critical short-term support. Its breach sent a bullish warning sign that quickly turned into a chain reaction of liquidations.

Traders long on margin were hit hardest. The liquidation cascade started once sell pressure spiked and automated stop-losses kicked in – dumping even more BTC onto the market. 

At the time of writing, Bitcoin trades at around $118,864, down 2.51% on the day with a market cap of $2.36 trillion and 24-hour trading volume exceeding $95.5 billion.

$1 Billion in Liquidations: Here’s What Happened

According to analytics firm Grey BTC, over 218,000 traders were liquidated, wiping out more than $1 billion in Leveraged positions. The majority were long bets, placed after Bitcoin’s previous rally toward $124K. Once the pullback began, margin calls triggered rapid fire selling across Bybit, Binance, and OKX.

This level of forced selling typically accelerates volatility. With many traders flushed out, new resistance may now build in the $120K–$122K zone, which bulls had previously tried – and failed – to reclaim.

The wave of liquidations wasn’t just a technical event – it was psychological. It showed how fast crypto sentiment can reverse, especially when macroeconomic pressure builds.

Inflation Data & Fed Signals Fuel Panic

What triggered this avalanche? A hotter-than-expected U.S. inflation report. The producer price index (PPI) came in higher than forecast, suggesting that the Federal Reserve may delay any interest rate cuts.

That sent shockwaves through both traditional and crypto markets. As soon as the inflation data dropped, the dollar index rose while risk assets like Bitcoin tanked. The narrative that the “Fed pivot” WOULD support crypto bulls lost steam, and traders began pulling risk off the table.

The MOVE underscored how macro forces continue to dominate even decentralized assets. Despite Bitcoin’s reputation as an inflation hedge, short-term price action still dances to Wall Street’s tune.

Can Bitcoin Bounce Back? Here’s What to Watch

Despite the brutal fall, Bitcoin isn’t down for the count. Some analysts see the $115K–$118K range as a potential accumulation zone. If that level holds – and macro data doesn’t worsen – Bitcoin could re-attempt a climb back toward $122K, and potentially push to the $125K–$130K breakout zone in the coming weeks.

Optimism is also building around institutional involvement. This cycle is seeing strong ETF demand, retirement account access to crypto (via 401(k) expansions), and renewed spot FLOW from whales. But for that bullish case to play out, Bitcoin needs to hold current support and avoid another mass liquidation event.

Why Bitcoin Hyper Is Still in Focus

As Bitcoin shakes off short-term volatility, investor attention is shifting to projects that offer next-gen blockchain utility and still have early entry upside – and Bitcoin Hyper is climbing that list fast.

Bitcoin Hyper is a high-performance Layer 2 project built on Solana’s VIRTUAL Machine, designed to combine Bitcoin-level decentralization with Solana-like speed and fees. Using zk-rollups and a native 1:1 pegged token system, it allows users to transact nearly instantly – without compromising on security.

More than just fast tech, Bitcoin Hyper is pulling serious attention in presale, with over $9.6 million already raised. Early buyers are betting on its unique hybrid model – and the fact that it’s still early means those gains haven’t been priced in.

Key perks of Bitcoin Hyper:

• Uses zk-rollups to lower fees and increase scalability
• Compatible with Solana apps like Pump.fun, Raydium, and Jupiter
• Smart contract functionality with a Bitcoin backbone
• Still in presale – $HYPER is currently priced at $0.012725

Investors can buy $HYPER with crypto or card and even stake while purchasing. 

The post Crypto News: Bitcoin Falls Below $118K as $1B Liquidations Spark Panic appeared first on icobench.com.