Bitcoin Falls to Nine-Month Low as Market Rout Sparks Massive Liquidations
Bitcoin has dropped to a nine-month low of $81,000, extending a sharp correction that has now erased roughly 35% from its all-time high, shaking an already fragile crypto market.
The sell-off triggered widespread forced liquidations as traders rushed to reduce exposure amid rising geopolitical tensions and renewed economic uncertainty coming out of Washington.
During early Friday trading, Bitcoin briefly touched $81,058 on Coinbase, its weakest level since April. The decline marks a dramatic reversal from October’s peak above $126,000, as risk sentiment deteriorated across global markets.
$1.68 Billion in Liquidations as Leverage Unwinds
Data from CoinGlass shows that approximately 270,000 traders were liquidated in the past 24 hours, with total losses reaching $1.68 billion.
Nearly 93% of the liquidations were long positions, concentrated primarily in Bitcoin and Ether, highlighting how leveraged bullish bets were caught off guard by the speed of the downturn.
This liquidation pattern has become familiar during sharp market corrections. As prices fall through key technical levels, forced selling accelerates declines, pushing prices well below levels supported by organic spot demand. Bitcoin is now hovering near a critical monthly support zone, an area that has historically marked important inflection points for the asset.
Crypto Market Loses $200 Billion in One Day
The sell-off extended beyond Bitcoin. The broader cryptocurrency market lost approximately $200 billion in total capitalisation in a single day.
Altcoins bore the brunt of the damage, with thinner liquidity amplifying losses as traders scrambled to exit positions. Historically, alternative tokens tend to underperform during periods of stress as capital concentrates in fewer, more liquid assets.
Why Bitcoin Is Falling: Macro Risks Take Centre Stage
Unlike previous crypto crashes driven by internal industry failures, the current downturn has been imported from traditional markets. A series of geopolitical and policy developments in the United States played a central role in the sell-off. President Donald Trump announced plans to reveal his next Federal Reserve Chair nominee, injecting fresh uncertainty into interest rate expectations.
At the same time, the US administration dispatched additional warships to the Middle East amid escalating tensions with Iran, significantly raising geopolitical risk across global markets.
Speaking to reporters, Trump said:
“We have a lot of very big, very powerful ships sailing to Iran right now, and it would be great if we didn’t have to use them.”
Markets interpreted the remarks as a signal of heightened conflict risk.
Trade Tensions and Policy Uncertainty Add Pressure
Further unsettling investors, Trump declared a national emergency and signed an executive order threatening tariffs on countries that trade oil with Cuba.
The move reinforced concerns that trade risks are returning and that policy unpredictability remains a defining feature of the current administration. Risk assets sold off broadly in response.
Even traditional safe havens were not spared. Gold has fallen 9% from its recent high near $5,600 per ounce, while silver is down more than 11%, suggesting crowded positioning and forced deleveraging across markets.
Tech Stocks Slide, Adding to Risk-Off Sentiment
US technology stocks added another layer of pressure. Microsoft shares plunged 10% on Thursday, marking their worst single-day decline since March 2020.
The drop followed the company’s earnings report, which showed record capital spending alongside slowing cloud growth, reigniting concerns about valuation and profitability across the tech sector. Given Bitcoin’s increasing correlation with high-growth risk assets, weakness in big tech spilled quickly into crypto markets.
Outlook: Volatility Likely to Persist
Bitcoin’s decline appears less like a rejection of its long-term investment thesis and more like collateral damage from a broad global de-risking event.
When leverage is elevated and liquidity tightens, correlations across asset classes tend to rise. Until geopolitical tensions ease and confidence returns to traditional risk markets, volatility is likely to remain the norm rather than the exception for crypto investors.
