Crypto Flash Crash Sends Bitcoin Below $77,000, Triggers $1.8 Billion Liquidation Wave

Bitcoin held near $78,000 as a rebound in major cryptocurrencies revived risk appetite across digital-asset markets. Ether and Solana advanced alongside the largest token, while stronger US equities and Nvidia’s better-than-expected earnings provided a supportive backdrop for speculative assets. The broad move suggests investors are again adding exposure after recent volatility, though elevated derivatives activity leaves the market vulnerable to sharp price swings.

In the latest reported session, Bitcoin defended the $78,000 threshold and Ether climbed back above $2,500, with Solana and other major tokens also gaining. The Crypto Fear & Greed Index rose to 71, signaling renewed optimism. Total cryptocurrency futures liquidations reached $258 million over 24 hours, with short positions accounting for slightly more losses than longs as the rebound forced bearish traders to close leveraged bets.

Bitcoin is highly sensitive to policy signals from Washington and positioning in leveraged derivatives markets. Favorable developments can draw spot buying while forcing traders who wagered on a decline to repurchase the asset. When short positions are crowded, rising prices trigger liquidations that generate additional buying and amplify the advance, making the scale of forced closures an important gauge of market leverage and near-term financial stress.

Bitcoin jumped 7.9% in a single day to around $77,000, although the supplied report did not specify the trading date. The rapid advance triggered a broad short squeeze, forcing the liquidation of roughly $1.21 billion in bearish positions. The scale of the wipeout shows how quickly Washington-driven optimism moved through leveraged crypto markets, with mandatory buybacks adding momentum to the rally after prices began climbing.

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.

Cryptocurrency prices are influenced by dollar liquidity, risk appetite and institutional fund flows. The Federal Reserve's recent hawkish stance, persistent outflows from spot Bitcoin ETFs and weakness in U.S. technology stocks have accelerated investors' retreat from risk assets, triggering cascading liquidations in the highly leveraged crypto derivatives market.

On June 23, Bitcoin fell below $62,000, while Ether and a range of altcoins also tumbled. Liquidations reached $714 million over the previous 24 hours, forcing about 144,000 traders out of their positions, with longs suffering the heaviest losses. The Crypto Fear & Greed Index fell to 23, entering the “extreme fear” zone.

Bitcoin is a key bellwether for the cryptocurrency market, and its price swings often affect assets such as Ether as well as leveraged positions. The latest selloff was driven by outflows from U.S. spot Bitcoin ETFs and concerns that the Federal Reserve could raise interest rates, signaling a rapid deterioration in investor risk appetite.

Bitcoin fell 9% over the latest 48 hours, dropping below $70,000 before retesting support at $67,000. The total cryptocurrency market capitalization shed $176 billion over the same period. More than $1.5 billion in leveraged long positions was liquidated, while cumulative outflows from U.S. spot Bitcoin ETFs reached as much as $2.1 billion, adding markedly to bearish pressure.

Bitcoin is the largest cryptocurrency by market capitalization, and sharp price declines often force exchanges to liquidate highly leveraged positions, with the impact spreading to tokens such as Ether. After BTC fell below $69,000, the market is also watching whether its 200-week moving average will hold. If that support breaks, analysts’ downside target of $50,000 could come into focus.

Bitcoin fell about 6% in a single day over the weekend, briefly approaching $68,000. In the latest 24-hour period cited as of July 20, 2026, crypto liquidations across the market neared $400 million, including about $300 million in bullish long positions. Although a golden cross on the daily chart could provide near-term support, a recovery above $69,000 remains crucial.

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’s move above $80,000 reflected a rapid return of capital to the crypto market and triggered a short squeeze. When prices rise against bearish positions, exchanges forcibly close shorts with insufficient margin, adding further upward pressure. Market maker Wintermute warned, however, that spot trading volume had fallen to a two-year low and that the risk-reward profile at current prices was unattractive.

Bitcoin briefly touched $80,594 on Monday before climbing as high as $81,640, its highest level in about half a month. Market-wide liquidations exceeded $370 million over the previous 24 hours, with some estimates putting the total at $387 million and the number of affected traders at about 100,000. Shorts accounted for about 81%, with more than $300 million liquidated. One whale continued to hold a short position despite unrealized losses of about $13 million.

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 is a key barometer for the crypto market, and sharp price gains can force bearish traders to cover their positions, triggering a short squeeze. Its move above $78,000 marked a 10-week high and signaled rising market participation and leverage, drawing attention to heightened volatility and the risk of cascading liquidations.

As of July 19, Bitcoin had briefly topped $79,000 and was testing the $78,000 resistance zone, lifting altcoins and putting Circle, Coinbase and Strategy in focus. Total liquidations exceeded $820 million over the previous 24 hours, including about $660 million in short positions, which accounted for more than 80% of the total.