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Bitcoin Falls to $78,000 as Rate Fears Trigger $550 Million in Long Liquidations
Bitcoin fell on Saturday, extending losses after a sharp deterioration in risk appetite triggered a wave of long liquidations as markets grew concerned about the ongoing confrontation between the United States and Iran, as well as rising inflation.
The world’s largest cryptocurrency dropped 1.3% to $78,231.0 as of 07:36GMT.
The sharp decline coincided with a broader global bond selloff and the worst single-day performance for U.S. equities since March, catching highly leveraged bullish traders off guard.
Bitcoin’s Decline Caught Markets by Surprise
Bitcoin plunged from levels above $80,000, effectively erasing the entire market rally from the previous seven days, during which the asset briefly traded above $82,000.
Data compiled by CoinGlass showed that $581 million in digital asset positions were liquidated over the past 24 hours, with an overwhelming 95%, or approximately $552 million, wiped out from leveraged long positions.
Bitcoin led individual losses with $189 million in liquidations, followed by Ethereum at $151 million, while the single largest liquidation occurred on Bitget through a BTCUSDT position worth $21.59 million.
The synchronized selloff unfolded as traditional global macro markets reacted to consecutive releases of elevated Consumer Price Index (CPI) and Producer Price Index (PPI) data earlier in the week.
Combined with crude oil prices remaining above $105 per barrel due to the ongoing Iran conflict and shipping restrictions in the Strait of Hormuz, persistent inflation data forced bond and equity traders to shift expectations from Federal Reserve rate cuts toward the possibility of future rate hikes.
The broader financial shift pushed U.S. 10-year Treasury yields above 4.5%.
As macro markets priced out liquidity easing until 2026, the highly leveraged digital asset market underwent a sharp repricing.
On-Chain Data Sparked Debate Over Sovereign Crypto Reserves
At the same time, notable on-chain tracking data from Arkham Intelligence triggered debate regarding sovereign cryptocurrency reserves.
Blockchain analytics indicated that Bhutan’s sovereign investment fund, Druk Holding and Investments, had systematically moved and likely liquidated approximately $1 billion worth of Bitcoin since mid-2025.
The recorded transfers reduced the country’s confirmed on-chain holdings from roughly 13,000 BTC to 3,220 BTC, currently valued at nearly $261 million.
However, officials from Druk Holding and Investments directly denied selling any portion of the country’s digital asset reserves.
Crypto Prices Today: Altcoins Crashed Following Long Liquidations
Altcoin prices also collapsed amid widespread long liquidations.
Crypto markets had rallied earlier in the week on optimism surrounding progress in the key U.S. legislation known as the CLARITY Act, but by Saturday most of those gains had been erased.
The world’s second-largest cryptocurrency, Ethereum, fell 2.3% to $2,178.25, while XRP declined 1.9% to $1.4141.
Solana lost 3.5%, while BNB fell 2.6%, and Cardano traded 2.7% lower.
Among memecoins, Dogecoin dropped 3.31%, while Official Trump fell 2.9%.
See also: "Bitcoin Tests the Breakeven Level of Short-Term Whales"
