Bitcoin and Ethereum extend losses amid liquidation wave
The crypto market saw renewed downside pressure over the past 24 hours as both Bitcoin and Ethereum traded sharply lower, triggering a large wave of forced liquidations across derivatives markets.
According to market data from Binance, Bitcoin fell below the $80,000 level and was trading near $79,210, down roughly 2.6% on the day at one point. Ethereum also slipped below $2,500, changing hands around $2,436, representing a decline of nearly 3.9% over the same period.
The sell-off coincided with a sharp increase in liquidations, suggesting that leverage once again played a central role in accelerating the move.
Liquidations reach $1.59 billion in 24 hours
Data from Coinglass shows that total crypto liquidations over the past 24 hours reached approximately $1.59 billion.
The breakdown highlights a familiar pattern. Around $1.47 billion of those liquidations came from long positions, indicating that traders positioned for continued upside were forced out as prices moved lower. Short liquidations accounted for a comparatively small share of the total.
Such imbalances often appear when markets unwind crowded positioning rather than react to a single headline or fundamental shift.
Bitcoin briefly dips below MicroStrategy’s cost basis
As selling pressure intensified, Bitcoin extended its decline further, briefly falling to an intraday low of around $75,720. At that level, BTC was down roughly 4.2% over 24 hours.
Notably, the move pushed Bitcoin below the reported average cost basis of MicroStrategy, which sits near $76,037 per BTC. While the dip below this level was short-lived, it drew attention given MicroStrategy’s status as the largest corporate holder of Bitcoin.
Bitcoin later rebounded modestly and was trading around $77,889 at the time of the latest data, recovering from the session low but still well below recent highs.
Leverage, not fundamentals, drives the move
There has been no single fundamental catalyst tied to the price decline. Instead, the scale and speed of the move point to structural factors, particularly leverage and liquidity conditions.
When Bitcoin and Ethereum slipped through key psychological levels, automated liquidations and risk controls accelerated the downside. As long positions were closed, selling pressure compounded, pushing prices further into liquidation zones.
This dynamic has become a recurring feature of crypto markets during periods of elevated leverage.
Ethereum tracks broader risk-off move
Ethereum’s decline largely mirrored Bitcoin’s move. Dropping below $2,500, ETH entered a zone that has previously acted as both support and resistance.
As with Bitcoin, the majority of liquidations tied to Ethereum were long positions, reinforcing the view that traders were positioned for continuation rather than correction.
Absent a clear shift in spot demand, ETH remains sensitive to broader market structure and liquidity flows.
BTCUSA commentary: a leverage reset, not a regime shift
From a BTCUSA perspective, the latest move looks more like a leverage reset than a change in the broader market regime.
Large liquidation events often relieve short-term pressure by clearing excessive positioning. While they can extend price declines in the moment, they also tend to reduce fragility once the forced selling subsides.
The brief move below MicroStrategy’s cost basis is symbolically notable but not structurally decisive. What matters more is whether spot demand absorbs supply after leverage has been flushed.
Conclusion
Bitcoin and Ethereum both moved sharply lower as a wave of liquidations swept through crypto derivatives markets, with total losses reaching $1.59 billion over 24 hours and long positions accounting for the vast majority.
Bitcoin briefly fell below $80,000 and dipped under MicroStrategy’s average cost basis before stabilizing, while Ethereum slid below $2,500 amid similar pressure.
For now, the sell-off appears driven by leverage and market structure rather than fundamentals. Whether prices stabilize or extend lower will depend on how quickly forced selling fades and whether spot buyers step back in.
