The crypto market is getting hammered today. Bitcoin (BTC) slipped below $104,000 for the first time since October 17 – and the fallout spread rapidly. Over $1.37 billion in leveraged positions were liquidated in the past 24 hours, and longs accounted for $1.22 billion of that total.

These liquidations were set off because too much leverage had accumulated in the system. Funding rates had crept up to +0.0026%, which left the market sitting on a hair trigger. And when Bitcoin broke through support at $106,000, it kicked off a cascade of forced liquidations that fed on itself.

Meanwhile, U.S.-based spot Bitcoin ETFs saw over $1.15 billion in outflows in the final three days of last week. These outflows indicate that…