$1.7B in leveraged orders liquidated amid risk-off sentiment and U.S. government shutdown fears.
Bitcoin fell more than 9% in early trading on Friday amid a broad sell‑off across risk assets that rippled through the cryptocurrency market.
The world’s largest cryptocurrency failed to hold above the key $90,000 resistance level, dropping to around $81,100, its lowest in roughly nine months, before modestly stabilizing near $82,700 later in the session.
The sudden sell-off sparked massive liquidations in leveraged crypto positions, intensifying downward pressure on the market.
According to analytics platforms, $1.71 billion in leveraged positions were wiped out in the past 24 hours.
CoinGlass data showed that roughly $1.59 billion, about 93%, of these liquidations were long positions, mainly in Bitcoin and Ether. Over 274,000 traders were impacted.
Risk‑Off Mood in Markets
Unlike crashes triggered by a single event, Friday’s Bitcoin sell-off was driven by a mix of macroeconomic pressures and risk‑off sentiment.
Broad risk assets, including equities and cryptocurrencies, sold off simultaneously. Weak tech earnings and a “sell the news” reaction followed the Federal Reserve’s decision earlier this week to hold interest rates steady at 3.5%-3.75%, offering no hints of near‑term cuts.
A weakening U.S. dollar and heavy outflows from U.S. spot Bitcoin ETFs, totaling over $1 billion in recent days, fueled a rotation into traditional safe havens like gold, which soared to an unprecedented $5,580 on Thursday.
Ongoing macroeconomic uncertainty, coupled with U.S. government shutdown risks, further pushed investors away from high‑risk assets, driving market sentiment into extreme fear territory.
Where Investors Look Next
As Bitcoin hovers around $82,300 on Friday, traders point to the upcoming U.S. government shutdown as a key factor creating short-term uncertainty and potential weekend lows, even as monthly and weekly charts maintain a bullish bias for February.
As traders now watch today’s close closely, prominent trader @astronomer_zero says, holding above key support could reignite bullish momentum once the shutdown risk passes, while a drop below December’s lows might push prices toward $81k, prompting cautious positioning and partial de-risking until market direction becomes clearer.
Why This Matters
Bitcoin’s sharp drop and massive long liquidations highlight the market’s sensitivity to macroeconomic uncertainty and government-related risks.
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