Bitcoin Slides Below $106K as Cryptos Tumble, Nearing October Crash Lows

💡 DMK Insight

Over $1 billion in leveraged positions got wiped out, and here’s why that matters: This massive liquidation signals a shift in market sentiment, likely driven by fear and uncertainty. Traders should note that such sharp downturns often lead to increased volatility, which can create both risks and opportunities. If you’re in the derivatives space, keep an eye on how this affects open interest and funding rates in the coming days. A spike in funding rates could indicate that traders are still heavily positioned for a rebound, while a sustained drop in open interest might suggest a more cautious approach. On the flip side, this could also be a potential buying opportunity for those looking to enter at lower prices. Watch for key support levels in major cryptocurrencies; if they hold, it might signal a reversal. Pay attention to the next few days for any signs of recovery or further declines, as market participants react to this shakeout.