Bitcoin dropped below the $97,000 mark after a sharp wave of market volatility led to more than $1 billion worth of liquidations across top crypto exchanges. The decline reflected leveraged unwinding in derivatives positions, particularly among short-term traders responding to sudden price swings. Market analysts indicated that funding-rate adjustments and algorithmic trading activity intensified the selloff. Despite the correction, long-term holders continued to maintain steady balances, suggesting broader structural confidence in the asset even amid high intraday uncertainty.