Headline: Bitcoin flash crash erases ~$100B as whales and market makers sell into leveraged longs Lead: Bitcoin and other major cryptocurrencies plunged over the weekend after rising US–EU tariff tensions sparked risk-off flows and heavy long liquidations. The sudden sell-off wiped roughly $100 billion from total crypto market capitalization in hours, with on-chain analytics pointing to large holders, exchanges and market makers cutting positions into a sea of leveraged longs. What happened - Market tracking services show the crypto market lost about $100 billion during the rapid downturn, accompanied by a sharp jump in trading volume. - DeFiTracer reported that major holders — including institutional participants and exchanges — were net sellers during the drop, describing the action as coordinated selling among large players and market makers. - Analysts said the move was driven more by broad risk-off sentiment tied to geopolitical frictions than by crypto-specific fundamentals, with US threats of tariffs on European nations and EU talk of retaliation coinciding with the weakness. Reports and comments related to Greenland also factored into market nerves, and US equity futures opened lower. Why liquidations amplified the fall - High leverage in derivatives markets turned price moves into cascading liquidations: as leveraged long positions were wiped out, forced selling pushed prices lower and triggered further liquidations. - Market observers suggested market makers and exchanges appeared to have anticipated the move, selling into longs and accelerating the decline. Technical picture and historical context - Technical analysts flagged a rejection at the 38.2% Fibonacci retracement level and noted a potential reversal pattern forming around that threshold. - Some drew parallels to 2022, when Bitcoin tested similar technical levels ahead of a steep sell-off during the FTX collapse and aggressive Fed tightening. Others pointed out differences in the macro backdrop today — signs of shifting monetary policy and ongoing volatility — while warning that leverage remains high and could keep magnifying swings. Where Bitcoin stands now - Despite the weekend’s volatility, Bitcoin remains modestly higher on a seven-day basis. Traders are watching critical support levels closely for signs of further downside or potential recovery. Bottom line: The flash crash underscored how geopolitical shocks and crowded leveraged positions can combine to produce rapid, outsized moves in crypto markets. Traders and risk managers are likely to be watching leverage and large-holder activity closely in the near term. Read more AI-generated news on: undefined/news

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