XWIN Japan2025-11-13

Binance Leads a Surge in Long Liquidations as Bitcoin Drops Ahead of Government Shutdown Resolution

Bitcoin’s drop below $103,000 on November 12 coincided with a sharp increase in long liquidations on Binance. As shown in the chart, Binance recorded one of the largest daily liquidation spikes in the past ten days, revealing how heavily the market had been tilted toward leveraged long positions. Once key support levels were breached, these crowded positions were unwound rapidly. While some reports highlighted over $120 million in liquidations within a single hour, the data shows that multiple liquidation waves occurred throughout the day. This created a broader, day-long deleveraging event. Each break of support triggered forced closures of long positions, which pushed prices lower and set off additional rounds of liquidations — a classic liquidation cascade. Despite the positive news that the U.S. government shutdown was about to be formally resolved, the market failed to react in a risk-on manner. The reason is straightforward: the development was largely priced in, leading to a mild “sell-the-news” effect. At the same time, a temporary rise in the U.S. dollar index and long-term yields weakened buying appetite precisely when liquidity was needed to absorb the sell pressure. Bitcoin ETF flows have also remained soft in recent sessions, limiting institutional spot demand. This lack of strong bid support made the market more vulnerable to liquidation-driven volatility. In summary, the decline was not driven by deteriorating fundamentals but by excessive leverage on Binance, cascading liquidations, and unfavorable timing. Once this deleveraging phase stabilizes, the medium-term market backdrop remains constructive.