Bitcoin (BTC) Slides Below $80K After $2.56B Liquidation Flush — Here’s What Triggered the Crash

Group 1 - Approximately $2.56 billion in Bitcoin positions were liquidated recently as the cryptocurrency market experienced a sell-off alongside a broader retreat from risk assets, including equities and precious metals [1][8] - Bitcoin's price fell over 6% to around $78,396, with analysts noting that thin weekend liquidity can exacerbate downside movements during periods of market stress [1][6] - The recent liquidation wave was significantly smaller than the $19 billion spike observed after the announcement of new tariffs on China, indicating a tighter correlation between crypto trading and broader risk appetite during macro volatility [2][8] Group 2 - The risk-off sentiment was intensified by a sharp reversal in precious metals, with gold and silver prices declining after President Trump nominated Kevin Warsh for the next U.S. Federal Reserve chair, which strengthened the dollar and pressured commodities [4][8] - Increased margin requirements for certain metal futures by CME Group raised the cost of holding leveraged positions, potentially curbing speculative activity and forcing traders to reduce their exposure [5][4] - The liquidation trend reflects a positioning story, as Bitcoin had previously peaked above $126,000 before the sharp decline, leaving leveraged long positions vulnerable when market momentum shifted [6][8]