Bitcoin extended its sharp decline on Thursday, briefly falling to the $81,000 level before stabilizing slightly higher. The move capped a brutal 24-hour period in which the largest cryptocurrency by market value lost nearly $10,000, rattling traders and triggering widespread liquidations across the digital asset market.
The sudden drop wiped out a significant amount of leveraged positioning. In just one hour, more than $777 million worth of long positions were forcibly closed, with total liquidations exceeding $1.7 billion over the past day. Such rapid liquidations often amplify downside volatility, accelerating price declines during periods of weak sentiment.
Altcoins Slide as Bitcoin Weakens
The broader crypto market followed bitcoin lower. Ether slipped below a widely watched bull-market trendline and hovered near $2,700, while other major tokens such as BNB and XRP posted losses of roughly 7% to 9% over the same period. The synchronized decline suggests a broad risk-off move rather than asset-specific weakness.
Key Support Levels Under Pressure
Technically, bitcoin is now hovering just above its November low near $81,000. A decisive break below this level could open the door to a deeper pullback, with the next major support zone around $75,000, a level last seen during market turmoil in April 2025.
Adding to market stress, comments from U.S. President Donald Trump fueled speculation about an imminent change in Federal Reserve leadership. Betting markets sharply increased the probability that Kevin Warsh could be nominated as the next Fed chair, a development some traders interpret as less supportive for risk assets in the near term.
As policy uncertainty and technical pressure converge, traders remain cautious, watching whether bitcoin can hold key support or faces further downside.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.