Cryptocurrency markets experienced significant liquidations on Thursday and Friday as Bitcoin fell to $80,350 on Bitstamp, marking its lowest level since September 18. According to CoinGlass data, total crypto liquidations reached $1.09 billion over the 24-hour period ending Friday at 10 am UTC—the largest daily total since August 21.
Long positions accounted for $1.05 billion of the liquidations, while short positions made up the remainder. Bitcoin recovered partially to around $82,500 on Friday, a level that has served as key support during Bitcoin's broader uptrend since early July and represented a breakout point for an inverse head-and-shoulders pattern.
Short-term holders—investors holding Bitcoin for up to six months—sent 55,600 BTC to exchanges at a loss on Thursday, according to CryptoQuant data. These transactions occurred at prices lower than previous sale prices and often reflect investors exiting positions out of fear of further price declines. The magnitude was notable given that Bitcoin was trading above $81,000, compared to $59,300 during a similar loss-driven event on June 26.
The sell-off occurred following reports that the U.S. government moved more than 12,000 BTC that it had previously confiscated, transfers that can potentially fuel market sales. Analyst Rekt Capital flagged the upcoming weekly candle close as critical, noting that if Bitcoin closes below $82,500, it would turn that level into resistance and could signal a return to a macro accumulation range.
