Bitcoin extended its decline on Saturday, falling back toward the $78,000 level as risk sentiment weakened sharply across global markets. The move came after a sudden shift in investor positioning triggered a large wave of liquidations in leveraged crypto trades.
The leading cryptocurrency dropped about 1.3%, trading near $78,231 in late U.S. session hours, after briefly holding above $80,000 earlier in the week. The reversal erased much of the recent gains, which had pushed Bitcoin above $82,000 at its peak.
Heavy liquidations hit bullish traders
According to market tracking data, more than $580 million in crypto positions were wiped out within 24 hours. The majority of losses came from long positions, suggesting overleveraged bullish bets were caught off guard by the downturn.
Bitcoin accounted for nearly $190 million in liquidations, while Ether followed with over $150 million. Smaller but significant forced sell-offs were also recorded across major altcoins, including Solana, XRP, and BNB.
Macro pressure weighs on risk assets
The selloff coincided with increased uncertainty in traditional financial markets. Concerns over persistent inflation readings and shifting expectations around U.S. interest rates added pressure on risk assets.
Stronger-than-expected inflation data earlier in the week pushed investors to reconsider the possibility of rate cuts, with some even pricing in a more restrictive monetary outlook. At the same time, rising geopolitical tensions and higher oil prices added to inflation worries, driving bond yields higher and tightening liquidity conditions.
As yields climbed, investor appetite for high-risk assets weakened, contributing to the sharp move lower in crypto markets.
Wider crypto market follows Bitcoin lower
The broader digital asset market also declined in tandem with Bitcoin. Ether slipped over 2%, while XRP, Solana, and BNB all posted losses between 2% and 4%.
Memecoins also came under pressure, with Dogecoin and other speculative tokens declining as traders reduced exposure amid heightened volatility.
Despite earlier optimism driven by regulatory discussions in the U.S., the momentum faded quickly as macroeconomic concerns took center stage, leading to a broad-based crypto pullback.