Bitcoin Sees Sharp Decline: Yearly Gains Erased as Market Enters Extreme Fear

A wave of heavy volatility over the weekend pushed Bitcoin down to around $93,000. With this drop, the leading cryptocurrency wiped out all of its gains for the year, while total liquidations reached nearly $510 million. The fear and risk appetite index also fell to 10, signaling extreme anxiety among investors.

Analysts note that the $93,500–$91,000 range will be a key support zone as the new week begins. A breakdown below this area could open the door to a deeper correction, potentially pushing the price under $85,000. Due to ongoing volatility, traders are advised to be cautious—especially those using leverage.

Record Liquidations Hit Crypto Derivatives Markets

The sharp price moves also triggered significant stress in derivatives markets. Over the last 24 hours, more than 150,000 positions were liquidated, with the largest single liquidation reaching nearly $30 million. This once again highlights the risks tied to heavy leverage in crypto trading.

Experts warn that short-term traders should act carefully in the current environment and closely monitor potential recovery signals that may appear around major support levels. Volatility is expected to continue in the coming days.

Bitcoin’s Correlation With Tech Stocks Strengthens

Recent data shows that Bitcoin’s relationship with tech-focused indexes has grown considerably. The 30-day correlation coefficient between Bitcoin and the Nasdaq 100 has climbed to 0.80—its highest point since 2022 and one of the strongest readings of the past decade.

Meanwhile, Bitcoin’s correlation with traditional safe-haven assets such as gold and cash has nearly vanished. This shift suggests that Bitcoin is increasingly behaving like a risk-on technology asset, which is also putting pressure on small- and mid-cap crypto tokens