Haciyev Reşit 
Bitcoin experienced a sharp pullback in recent hours as selling pressure increased noticeably when U.S. markets opened their first trading session following the Christmas holiday. Losing nearly $3,000 in a short period of time, BTC saw volatility rise again as investors’ risk appetite weakened. The move, which accelerated with the start of the U.S. session, is being attributed to potential outflows from Bitcoin spot ETFs and a surge in liquidations across derivatives markets where leveraged positions are concentrated.
Bitcoin’s Decline Accelerated with the U.S. Market Open
According to market data, Bitcoin faced heightened selling pressure as the U.S. session began. This timing has strengthened views that the decline may be linked to outflows from Bitcoin spot ETFs. As U.S. markets came online, short-term investors in particular moved to sell, accelerating the downward price action.
At the time of writing, Bitcoin was trading at $87,486. BTC lost more than 2% over a short time frame, while its 24-hour decline approached 1.6%. Bitcoin’s total market capitalization stood at approximately $1.73 trillion.
Liquidation Wave in Derivatives Markets
The sudden drop in Bitcoin’s price had a significant impact on derivatives markets, where leveraged trading is especially prevalent. Data from the past 24 hours shows that $127.45 million worth of positions were liquidated, with the majority coming from long positions. The forced closure of long positions further intensified the downside momentum.
During the same period, $89.63 million in long positions and $37.82 million in short positions were liquidated. This highlights how unprepared many investors were for the sudden move and clearly underscores the risks associated with high leverage. The liquidation cascade was particularly pronounced in major assets such as Bitcoin and Ethereum, contributing to heightened market volatility.
On an asset-by-asset basis, Bitcoin recorded the largest liquidation volume at $47.51 million, followed by Ethereum (ETH) with $21.46 million and Solana (SOL) with $8.05 million. Liquidation heat maps clearly show that selling pressure was concentrated on Bitcoin and Ethereum. These figures indicate that the latest decline was not limited to the spot market but triggered chain liquidations in derivatives markets, especially in large-cap assets, leading to sharper short-term price swings.
Leverage Amplified the Selling Pressure
According to analysts, the widespread use of high leverage in the crypto market causes price declines to be more severe during sudden moves. As prices fall, positions with insufficient collateral are automatically closed, adding further selling pressure and deepening the decline, while also increasing short-term volatility.
That said, some analysts argue that the liquidation of excessively leveraged positions can reduce overall risk in the medium term and contribute to a healthier market structure. While price swings may appear harsh in the short run, clearing out leverage can help rebalance liquidity over time.
Altcoin Market Remained Relatively Calm
Despite the sharp pullback in Bitcoin, losses across the broader crypto market were more limited. Ethereum was trading around $2,916, while major altcoins such as BNB, XRP, and Solana saw intraday declines largely contained within the 1–2% range. This suggests that selling pressure was concentrated mainly on Bitcoin and leveraged positions.
In summary, Bitcoin’s sharp drop coinciding with the U.S. market open appears closely linked to spot ETF outflows, increased selling pressure, and liquidations in derivatives markets. While short-term volatility is expected to remain elevated, the move once again highlights the importance of caution when using leverage. Bitcoin’s next directional move will likely be shaped by ETF flows and incoming signals from U.S. markets.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.