Bitcoin falls below $108,000 as excessive leverage is washed away and $320 million liquidated

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Bitcoin was trading below $108,000 as of 9:20 a.m. UTC as the market fell 3.2% due to $320 million in liquidations and spot crypto ETF outflows.

BTC was trading at $107,779 in the European morning, down 2.8% over the past 24 hours, according to CoinDesk data. ether Ethereum$3,876.90 and solana sol$185.15 Both fell more than 3.5% while many other altcoins had losses of more than 4%.

The CoinDesk 20 Index (CD20), which provides a weighted measure of the digital asset market, is down about 3.5%.

According to CoinGlass data, 122,919 traders liquidated in the past 24 hours, totaling $320.32 million in liquidations, including $2.98 million in ETH-USDT orders on Binance.

Fund flows started the week weak. According to Pharcyde Investors, the US Spot Bitcoin ETF recorded net outflows of $40.4 million on Monday, October 20, including $100 million from BlackRock’s IBIT.

In the Cryptocurrency Fear & Greed Index, sentiment ranked 34th for “fear.”

Bloomberg reported that today’s gold price was $4,270 per ounce, down 1.97%.

Glassnode said open interest (OI) has fallen by around 30%, overleveraging has been eliminated, and funding is near neutral, reducing the market’s vulnerability to further liquidation cascades.

OI is the number of outstanding futures and perpetual contracts. A sharp drop usually means leverage has ended. Funding is the fee paid by a long or short to keep a permanent position open. Closer to neutral, the positioning becomes more balanced as it indicates that neither side is paying a premium.

In fact, less leverage and near-neutral financing can reduce the likelihood of another forced sell cascade, even if price movements remain volatile.

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Analyst Michael Van de Poppe said on X that Bitcoin’s monthly chart is moving sideways, with no clear peak or bottom, and expects even bigger gains. In layman’s terms, he sees this phase as a pause long enough to shed excess leverage while prices maintain a wide range, and once that foundation is built, the next strong rally becomes more likely.

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