A massive liquidation of long positions across the digital asset market occurred overnight, sending Bitcoin crashing to around $78,000.
The world's leading cryptocurrency was trading at $78,030.1 as of 12:51 PM MSK.
The sharp drop came amid a broader selloff in global bonds and the worst one-day performance for US stocks since March, catching highly leveraged bulls off guard.
Bitcoin (BTC) fell about 3.2% in 24 hours, according to Investing.com data, settling near $78,000 by Asian morning hours on Saturday. This drop effectively erased the entire market gain over the previous seven days, during which the asset briefly traded above $82,000.
Data compiled by CoinGlass showed that $581 million worth of digital asset positions were liquidated within 24 hours, with an overwhelming 95%, or approximately $552 million, being written off from leveraged long positions.
Bitcoin led the individual losses with $189 million in liquidations, followed by Ether (ETH) with $151 million, while the largest automated liquidation occurred on the Bitget exchange, for a $21.59 million BTCUSDT position.
The synchronized selloff occurred as traditional global macro markets reacted to consecutive strong consumer price index (CPI) and producer price index (PPI) data releases earlier this week. Combined with high crude oil prices exceeding $105 per barrel due to the ongoing conflict in Iran and shipping restrictions in the Strait of Hormuz, persistent inflation data forced bond and stock traders to adjust expectations from Federal Reserve rate cuts to potential rate hikes.
A broader financial shift pushed the 10-year US Treasury yield above 4.5%. As macro assets ruled out easing liquidity until 2026, the highly leveraged digital asset market experienced a sharp revaluation.
Concurrently, significant on-chain tracking data from Arkham Intelligence has sparked an institutional debate regarding sovereign crypto reserves.
Blockchain analytics revealed that the Royal Government of Bhutan's sovereign wealth fund, Druk Holding and Investments, has systematically moved and likely liquidated approximately $1 billion in Bitcoin since mid-2025. The reported moves reduced the country's confirmed on-chain holdings from approximately 13,000 BTC to 3,220 BTC, valued at nearly $261 million. However, Druk Holding and Investments officials categorically denied selling any portion of the state assets.
Cryptocurrency Prices Today: Altcoins Fall After Mass Long Liquidation
Altcoin prices also plummeted overall due to mass long liquidation across the crypto market.
The world's second-largest cryptocurrency, Ether, fell 3.57% to $2,173.76, while XRP declined 4.13% to $1,4041.
Solana lost 5.46%, BNB lost 4.51%, while Cardano fell 4.81%. Among memecoins, Dogecoin fell 4.31%, while $TRUMP plummeted 8.02%.