How Market Makers Accelerated Bitcoin's Crash to $60,000: Liquidity & Leverage Analysis

Bitcoin's sharp decline to the $60,000 level was significantly exacerbated by the actions of major market makers, according to market analysts. These key liquidity providers, who facilitate trading by maintaining buy and sell orders, were forced to rapidly unwind positions amid heightened volatility. This process created a negative feedback loop: as prices fell, market makers pulled liquidity from order books to manage risk, leading to larger price gaps and accelerated downward momentum. The situation was further intensified by the liquidation of over-leveraged long positions across derivatives exchanges. This combination of reduced market depth and forced sell-offs turned a correction into a brutal crash, highlighting the fragility of liquidity in crypto markets during stress events. Understanding this mechanism is crucial for traders assessing future volatility around key support levels like $60,000 for BTC.