A cross-asset liquidation wave driven by Microsoft artificial intelligence investment news sent gold down roughly 8%, silver tumbling nearly 12%, and Bitcoin (BTC) declining around 9% while triggering nearly $300 million in crypto long position liquidations and pushing Binance open interest back above pre-October 10 levels to approximately 123,500 BTC.
What Happened: Microsoft News Triggers Cross-Asset Rout
The sell-off began after announcements linked to Microsoft's artificial intelligence investments drove the company's shares down more than 12%. Investors rapidly reduced exposure to crowded growth and technology trades, setting off a domino effect across global markets.
Traditional safe havens offered no refuge.
Gold posted a sudden correction while silver dropped close to 12%, and U.S. equities including the S&P 500 and Nasdaq joined the move lower.
The repricing quickly spilled into crypto derivatives. Hyperliquid absorbed the largest share of liquidations at $87.1 million in longs wiped out, while Binance recorded roughly $30 million. The episode highlighted how fragile positioning and elevated leverage can transform moderate price moves into significant liquidation events.
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Market Outlook: Technical Imbalance Favors Upside
From a technical standpoint, BTC has swept its swing lows between $80,000 and $83,000, clearing a large cluster of long liquidations. With downside liquidity taken, attention is shifting higher.
Data shows a move toward $92,000 may place over $6.5 billion in cumulative short positions at risk of liquidation. A drop to $72,600 would only threaten about $1.2 billion.
This imbalance means upside moves may force short sellers to buy back positions, potentially accelerating price recovery.
Crypto commentator MartyParty framed the recent move as part of a Wyckoff Accumulation "Spring," where price briefly dips below support to shake out weak hands before reversing. The sweep below $83,000 may act as a final liquidity grab, allowing larger participants to buy discounted Bitcoin.
Monthly Bitcoin futures volume across all exchanges fell to about $1.09 trillion in January, the lowest since 2024. Trading remained concentrated on major venues, led by Binance with $378 billion, followed by OKX at $169 billion and Bybit near $156 billion.
Why It Matters: Leverage Signals Persistent Risk
Despite recent drawdowns, leverage remains embedded in the current crypto market structure.
Top analyst Darkfost noted that many investors continue pursuing exposure through high leverage, creating conditions where small price moves trigger sharp volatility bursts.
Derivatives data confirms this risk appetite has returned.
Open interest on Binance expressed in BTC terms—a method that removes distortion from price fluctuations—now stands at approximately 123,500 BTC.
This exceeds the level recorded before the October 10 sell-off, when open interest had fallen to around 93,600 BTC.
The roughly 31% increase since that low suggests leverage is accumulating again. Bitcoin's price action reflects a fragile structure, with BTC trading near $82,800 after failing to reclaim the $95,000–$100,000 region and now testing the critical $82,000–$85,000 support zone.