Key Moments
- Bitcoin traded 6.4% lower at $82,620.3, after touching an intraday low of $81,201.5.
- About $1.68 billion in leveraged crypto positions were liquidated, with roughly 93% of the wipeout hitting long positions.
- Altcoins tracked Bitcoin’s slide, with Ethereum, XRP, Solana, Cardano, Polygon, Dogecoin, and $TRUMP all recording notable declines.
Bitcoin Extends Losses to Two-Month Low
Investing.com – Bitcoin fell sharply on Friday, dropping to its weakest level in more than two months as a wave of forced liquidations rippled across leveraged positions and investors reassessed the potential implications of a possible change in U.S. Federal Reserve leadership.
The largest cryptocurrency by market value was recently down 6.4% at $82,620.3 by 02:15 ET (07:15 GMT). Over the prior 24 hours, Bitcoin sank to $81,201.5 and was hovering just above its April lows, with further weakness threatening to take it below those levels.
Liquidation Wave Hits Leveraged Crypto Traders
Data from CoinGlass showed that approximately $1.68 billion in leveraged crypto positions were liquidated in the last 24 hours amid the latest sell-off. Roughly 93% of those liquidations were linked to long positions, affecting traders who had been positioned for further price gains.
According to the data, about 270,000 traders experienced forced position closures, amplifying downside pressure in Bitcoin and the broader digital asset market.
These liquidations occur when exchanges automatically close leveraged positions that can no longer satisfy margin requirements as prices move adversely, which can intensify volatility and accelerate selling in risk-on markets.
| Metric | Value |
|---|---|
| Total leveraged liquidations (last 24 hours) | $1.68 billion |
| Share from long positions | About 93% |
| Number of traders liquidated | Approximately 270,000 |
Fed Chair Uncertainty Fuels Risk-Off Sentiment
The downturn in digital assets coincided with heightened concern around the outlook for U.S. monetary policy leadership.
President Donald Trump said he will announce his choice to replace Federal Reserve Chair Jerome Powell on Friday morning, adding to speculation that former Fed governor Kevin Warsh could be tapped to lead the central bank.
Reports indicated that the White House is preparing to nominate Warsh as the next Fed chair.
Warsh is considered as someone who may support a firmer approach to the Federal Reserve’s balance sheet and overall policy stance, a shift that could curtail liquidity conditions that have underpinned risk assets, including cryptocurrencies.
Broader financial markets have responded with classic risk-off positioning, with the dollar gaining strength and yields moving higher, while cryptocurrencies have faced renewed selling pressure.
Policy direction at the central bank influences interest rates, liquidity conditions, and the pricing of risk assets – key factors for high-beta instruments such as Bitcoin.
Altcoins Retreat in Broad-Based Crypto Sell-Off
Altcoins tracked Bitcoin lower on Friday, also coming under pressure from the liquidation wave.
| Cryptocurrency | Move | Latest Price |
|---|---|---|
| Bitcoin (BTC) | -6.4% | $82,620.3 |
| Ethereum (ETH) | More than -7% | $2,749.92 |
| XRP | -7% | $1.75 |
| Solana | -6.5% | Not specified |
| Cardano | -8% | Not specified |
| Polygon | Over -5% | Not specified |
| Dogecoin | -6% | Not specified |
| $TRUMP | -3.5% | Not specified |
Ethereum, the second-largest cryptocurrency, fell more than 7% to $2,749.92. XRP, the third-largest by market ranking in the article, slipped 7% to $1.75.
Solana weakened by 6.5%, Cardano dropped 8%, and Polygon declined by more than 5%.
Among meme-focused tokens, Dogecoin shed 6%, while $TRUMP moved 3.5% lower.
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