The cryptocurrency market entered a sharp correction phase on Friday, with Bitcoin (BTC) falling below the $105,000 mark for the first time in weeks. The downturn triggered widespread liquidations exceeding $1.1 billion across the global crypto market, as leveraged traders faced massive losses amid increased volatility.

Market Consolidation After Rapid Gains

Analysts suggest that the pullback is a result of market consolidation following Bitcoin’s recent rally past $110,000 earlier this month. The price surge had been driven by institutional inflows and optimism around the upcoming Bitcoin halving event. However, as profit-taking intensified, market sentiment shifted toward caution.

Altcoins Join the Decline

Major altcoins mirrored Bitcoin’s movement, with Ethereum (ETH) dropping below $3,500, Solana (SOL) losing nearly 8%, and XRP declining around 5% in 24 hours. The overall crypto market capitalization fell by nearly 4%, slipping below $3.8 trillion, according to CoinMarketCap data.

Liquidations Hit $1.1 Billion in 24 Hours

Data from Coinglass shows that over $1.1 billion worth of long positions were liquidated within a single day, marking one of the largest liquidations since September. The majority of the losses came from Bitcoin and Ethereum futures, while meme coins such as DOGE and PEPE also saw substantial long wipeouts.

Investor Sentiment Turns Cautious

While long-term holders remain optimistic, short-term sentiment has turned wary. Analysts warn that Bitcoin could face further volatility as traders await new macroeconomic data and potential regulatory developments in the U.S. “The current correction appears healthy after such an aggressive rally, but traders should brace for turbulence,” said one crypto strategist from Glassnode.

What’s Next for Bitcoin?

Experts suggest that Bitcoin’s support level lies near $100,000, a critical psychological mark for investors. If BTC manages to hold this zone, analysts believe a fresh rally could resume before the end of the quarter. However, a break below could trigger a deeper correction toward $95,000.