Bitcoin fell below $82,000 on Thursday, hitting an intraday low of $80,426.95 before recovering slightly to $81,423.05, down 2.9% over 24 hours. The decline accompanied a broader cryptocurrency sell-off that triggered nearly $1 billion in total liquidations as rising energy costs and geopolitical tensions pressured risk assets.
The Bottom Line
- Liquidation Scale: Coinglass data records total crypto liquidations reaching $974 million over 24 hours, with long positions accounting for $896 million of the total. Coinglass data showed total crypto liquidations topped $1.1B, led by ETH with $333M in leveraged positions wiped out.
- Asset Spread: Ethereum led liquidations at $311 million, followed by Bitcoin at $238 million. Analyst warn bitcoin could plunge to $75,000 if it fails to hold key support levels.
Overleveraged Long Positions Fuel $1 Billion Liquidations
The sharp contraction in digital asset valuations caught leveraged market participants off guard. According to Coinglass figures, total crypto liquidations reached $974 million, while alternative data placed the total slightly higher at $1.14 billion with Ethereum-based wipeouts hitting $333 million. Traders holding long positions suffered the vast majority of these forced closures at $896 million, compared to just $78 million for short positions.
The cascading liquidations pulled down altcoins across the board. Solana dropped 7.1% to $107.92, Dogecoin declined 6.4% to approximately $0.08, and both XRP and Ethereum fell roughly 4.5%, trading near $1.36 and $2,440 respectively. Strategy (MSTR), Coinbase (COIN) and Block (XYZ) each lost more than 2% during today’s trading, and Circle (CRCL), the issuer of the USDC stablecoin, declined by up to 1.5%. Ethereum treasury firm Bitmine Immersion Technologies (BMNR) ranked among the hardest-hit crypto-linked equities, with its shares tumbling over 5% in midday trading to reach levels last seen in mid-September.
| Asset / Ticker | 24-Hour Price Movement | Total Liquidations |
|---|---|---|
| Bitcoin (BTC) | -2.9% | $238 Million |
| Ethereum (ETH) | -4.5% | $311 Million |
| Solana (SOL) | -7.1% | Not Reported |
| Dogecoin (DOGE) | -6.4% | Not Reported |
Geopolitical Shocks and Oil Price Volatility
The cryptocurrency market downturn coincided with severe turbulence in global energy markets.
Despite the partial retracement, persistent energy inflation kept pressure on risk assets, compounding losses originating from digital asset liquidations.
Government Wallet Transfers and Market Speculation
Adding to market anxiety, on-chain data from Arkham showed wallets linked to the U.S. government moving 12,267 Bitcoin—valued at approximately $1.01 billion—from a Bitfinex seizure address to unmarked new addresses. Because the transactions showed no deposits onto centralized exchanges, analysts characterized the action as an internal wallet transfer rather than an immediate open-market liquidation.
This movement followed a prior day’s transfer of roughly 3,200 Bitcoin valued at $264 million, alongside $119 million in USDT, directed to Coinbase Prime deposit addresses originating from FTX, Alameda, and Bitfinex forfeiture holdings. While the transfers sparked social media speculation about impending government sales, market observers emphasized that no actual execution of a $1 billion sale had occurred.
Nevertheless, prediction markets and social commentators reacted swiftly to the sentiment shift. Kalshi Crypto prediction market traders adjusted expectations for Bitcoin to test $78,000 this month. Ted Pillows warned on social media that failure to hold the $81,500 to $82,000 support band could expose Bitcoin to a steeper decline toward $75,000.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
