Bitcoin Plunges to $82K as Market Liquidations Hit $2 Billion

Bitcoin fell sharply to $82,000, marking its lowest level since April, and unleashed nearly $2 billion in liquidations across the cryptocurrency market within 24 hours. The sharp drop affected both high-profile traders and retail investors, emphasizing the risks associated with leveraged positions.

Several well-known accounts faced repeated liquidations during the sell-off, highlighting the intensity of the market reaction. Traders who had positioned against broader trends suffered the biggest losses, while some had previously posted significant gains that were quickly eroded by the sudden decline.

Bitcoin accounted for roughly $1 billion of the liquidated positions, falling from $92,000 to $82,000 in less than a day. Long positions bore the brunt of the losses, reflecting heavy leverage among buyers who anticipated continued price strength.

Altcoins also saw major declines. Ethereum, XRP, Solana, Dogecoin, Cardano, HYPE, and Chainlink dropped between 10% and 15% in many cases, deepening the overall market decline. The total cryptocurrency market capitalization fell by nearly $300 billion, reaching $2.93 trillion.

Analysts attribute the crash to a combination of rapid unwinding of leveraged positions, low liquidity, and broader market volatility. While some investors may view this as an opportunity to accumulate, the sheer scale of liquidations serves as a reminder of the market’s sensitivity and the potential for sudden swings in digital assets.

The current market environment underscores the need for caution, especially for participants using high leverage, as even modest price shifts can result in outsized losses. Traders and institutions alike are closely watching for stabilizing signs before committing further capital.