Bitcoin Slumps to $81,000 as Losses Mount Across Crypto

Bitcoin extended its sharp pullback late Thursday during U.S. trading hours, sliding to as low as $81,000 before rebounding slightly to around $82,000. The move marked one of bitcoin’s steepest single-day declines in months, with the asset shedding nearly $10,000 over the past 24 hours.

Heavy leverage amplified the sell-off. Data from CoinGlass shows crypto traders suffered more than $777 million in long liquidations within a single hour, pushing total liquidations to roughly $1.7 billion over the past day.

Notably, about 270,000 traders were wiped out during that period, with 93% of liquidations tied to leveraged long positions, mainly in bitcoin and ether.

The broader crypto market followed bitcoin lower. Ether hovered near $2,700 after a drop of about 8%, while BNB traded around $843 and XRP slipped to roughly $1.74.

Overall, major digital assets fell between 7% and 9%, erasing an estimated $200 billion from the total crypto market capitalization in just 24 hours.

At current levels, bitcoin is clinging to support just above its November low near $81,000. If that level fails, traders are watching the next major support zone around $75,000, which marked the tariff-related low in April 2025.

Political Uncertainty and Global Tensions Weigh on Risk Assets

Traders appear to be reacting to rising political and macroeconomic uncertainty in the United States. Market volatility intensified after reports that President Donald Trump plans to nominate former Federal Reserve Board member Kevin Warsh to replace current Fed Chair Jerome Powell. Trump said he would announce his choice on Friday, following renewed criticism of the Fed for holding interest rates steady.

Polymarket odds for Warsh surged to 87%, up sharply from 37% just hours earlier. Before that jump, some investors viewed BlackRock fixed-income chief Rick Rieder as a more dovish contender, which had supported risk appetite.

Geopolitical tensions also pressured markets. The U.S. dispatched another warship to the Middle East amid escalating frictions with Iran, while Trump publicly warned that military force remained an option.

At the same time, Trump declared a national emergency and signed an executive order targeting countries that sell or supply oil to Cuba, raising fresh trade concerns.

Risk-off sentiment spilled into traditional markets. Gold dropped 9% from its recent all-time high near $5,600 per ounce, while silver fell more than 11%. With macro stress building and leverage unwinding, bitcoin now sits at a critical inflection point for the broader crypto market.

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