Bitcoin Tests $78,200 as Crypto Liquidations Surge to $388 Million

Cryptocurrency prices remain highly sensitive to shifts in the outlook for US monetary policy. Labor-market data have cooled expectations for interest-rate cuts, putting pressure on risk assets and extending the market’s pullback. Bitcoin’s $80,000 threshold and Ether’s $2,500 level have emerged as key technical and psychological supports as traders assess whether the retreat is a short-term correction or the start of a deeper decline.

Bitcoin most recently fell to about $79,000, breaking below $80,000, while Ether tested support near $2,500. Crypto derivatives liquidations reached $179 million over the past 24 hours, with leveraged long positions accounting for more than 70% of the total. Trading was subdued during the US Labor Day holiday, leaving investors focused on the forthcoming consumer price index report and the Federal Reserve’s next interest-rate decision.

Bitcoin and Ether serve as key gauges of risk appetite across digital-asset markets, with their moves often spilling over into smaller tokens and leveraged derivatives. The latest decline is significant because breaks below closely watched price levels can trigger automated selling and forced liquidations, amplifying losses as traders unwind positions financed with borrowed money.

Bitcoin fell below $78,000 in the latest selloff, while Ether slipped under $2,500. More than $470 million of cryptocurrency futures positions were liquidated across the market over the past 24 hours, with long positions accounting for 77% of the total. The Crypto Fear & Greed Index eased to 68, indicating sentiment remained positive but had become more cautious as prices extended their decline.

Bitcoin recovered toward $78,000 after a sharp pullback, while Ether led a catch-up rally above $2,500, reviving activity across the cryptocurrency market. The abrupt rebound also exposed the risks embedded in leveraged derivatives: rapid price swings can trigger cascading liquidations as exchanges forcibly close positions that no longer meet margin requirements, amplifying both gains and losses.

Crypto liquidations reached $1.46 billion over one 24-hour period, with nearly 190,000 traders forced out of their positions. A later market snapshot still showed about $390 million in liquidations as Bitcoin reclaimed roughly $77,000 and Ether outperformed. The recovery then faltered, with Bitcoin slipping below $78,000 and Ether losing $2,500 following remarks by Warsh on Federal Reserve policy, while the market’s fear gauge continued to rise.

Bitcoin and Ether are the crypto market’s two largest assets, and their prices often drive moves in altcoins and derivatives positions. Exchanges forcibly close highly leveraged contracts when their margin becomes insufficient, and cascading liquidations can deepen a decline. Liquidation totals therefore offer a gauge of market risk and investor sentiment.

In the early hours of June 10, 2026, Taipei time, Bitcoin broke below the $63,000 support level and fell through $61,000, while Ether tested $1,600. CoinGlass data showed that more than 120,000 traders were liquidated over 24 hours, with total liquidations reaching $380 million and the largest single order on Binance totaling $8.05 million. By June 25, BTC had fallen below $60,000 again, with liquidations exceeding $650 million and nearly 140,000 traders affected.

Bitcoin and the broader cryptocurrency market rely heavily on leveraged capital. When prices fall sharply, exchanges forcibly close positions with insufficient margin, amplifying the decline. The latest selling came ahead of the U.S. Federal Reserve’s interest-rate decision as risk aversion intensified. Consecutive net outflows from spot Bitcoin ETFs and MicroStrategy’s first Bitcoin sale also undermined investor confidence.

Bitcoin fell below $67,000 early on June 3 and briefly touched $66,316, pulling Ether, Solana, Dogecoin and other major cryptocurrencies lower. Marketwide liquidations reached $1.78 billion over 24 hours, with long positions accounting for about 90%. The concentrated unwinding of leveraged bullish bets sent market anxiety sharply higher.

Bitcoin has recently come under pressure from hawkish signals from the U.S. Federal Reserve, continued outflows from spot exchange-traded funds and geopolitical risks. The heavy concentration of leveraged long positions triggered cascading liquidations after the price broke below key support, further intensifying the market's “extreme fear” sentiment.

As of July 20, BTC had fallen as low as $72,582, a 14-day low, with about 152,000 traders liquidated for $755 million over 24 hours. Long positions accounted for more than 86% of the total. The market later plunged again to about $70,600, while the Fear and Greed Index dropped to 23 and ETH fell below $2,000.

Bitcoin and Ether are the crypto market’s leading assets, and sharp price declines can trigger forced liquidations on exchanges, amplifying selling pressure. Bitcoin’s slide toward $76,000 and Ether’s drop below $2,100 show that funds have yet to flow back into crypto in tandem with the Dow Jones Industrial Average’s record high.

As of July 19, preliminary data showed $53 million in liquidations across the market over four hours, with long positions accounting for 85%. Bitcoin later fell as low as $75,500, liquidating 64,000 traders for a combined $214 million. In the latest selloff, Bitcoin again dropped below $76,000 and Ether retreated to $2,000, while four-hour liquidations exceeded $134 million.

Bitcoin (BTC) and Ether (ETH) are key benchmarks for the crypto market, and their price swings affect perpetual futures and leveraged positions on exchanges. When markets reverse rapidly, platforms forcibly close long and short positions with insufficient margin, making CoinGlass liquidation data a widely used gauge of market risk and investor sentiment.

As of July 19, Bitcoin had rebounded to around $78,900 over the previous 12 hours, while Ether recovered to about $2,300. CoinGlass data showed that crypto liquidations exceeded $300 million over 24 hours, with more than 83,000 traders forced out of their positions. During the recent market moves, short positions at one point accounted for 67% of liquidations, highlighting the impact of sharp rallies on highly leveraged bears.

The correlation between U.S. equities and cryptocurrencies has deepened, with investors often withdrawing from volatile assets across both markets when risk sentiment weakens. Bitcoin's $77,000 level and Ether's $2,300 level are closely watched by traders. A break below them can trigger leveraged-position liquidations, intensifying short-term selling pressure and price volatility.

In the early hours of the 24th, U.S. stocks and cryptocurrencies faced a sharp simultaneous selloff. Bitcoin formally fell below $77,000, while Ether also dropped under $2,300. The plunge led to the liquidation of more than 100,000 derivatives traders across the crypto market, with total liquidations reaching $249 million as leveraged positions were rapidly unwound.

Bitcoin and Ether are the two largest crypto assets by market capitalization, and their prices are often driven by global risk appetite, leveraged capital and geopolitical developments. Signs of easing tensions in the Middle East on July 20, 2026, sent capital flowing back into risk assets. Bitcoin's ability to hold above $76,000 is now seen as an important technical test before a potential move toward $85,000.

The latest wave of buying pushed Bitcoin above $76,000 and close to $77,000, while Ether climbed above $2,400. CoinGlass data showed that more than $637 million in crypto derivatives positions were liquidated across the market in the 24 hours through July 20, 2026, affecting more than 190,000 traders. Analysts said Bitcoin could target $85,000 if it holds firmly above $76,000.