Bitcoin fell below the $98,000 mark today as tightening liquidity conditions prompted over $1 billion in derivatives liquidations across major exchanges. Analysts noted that leveraged positions were rapidly unwound after funding rates spiked, contributing to increased volatility. The decline reflected broader weakness across digital assets as traders remained cautious ahead of upcoming macroeconomic indicators. On-chain data indicated a rise in short-term holder selling, amplifying intraday swings. Market participants said liquidity depth remains uneven, signalling that volatility may persist as risk appetite remains subdued in the near term.