Bitcoin fell to $80,350 on Thursday, triggering nearly $1.1 billion in cryptocurrency liquidations over 24 hours as short-term investors moved thousands of BTC to exchanges at a loss.
According to CoinGlass data, total crypto liquidations reached $1.09 billion in the 24 hours to 10:00 UTC on Friday. Long positions accounted for approximately $1.05 billion of Thursday’s liquidations, reflecting the impact of the price decline on traders betting on higher prices.
Bitcoin’s price dropped to its lowest level since September 18 before recovering to around $82,500 on Friday. The decline followed reports that the US government had transferred more than 12,000 previously confiscated BTC, raising concerns about potential selling pressure.
Market analyst Rekt Capital warned that Bitcoin’s ability to hold the $82,500 level could be important for its broader price trend. A weekly close below this level could turn previous support into resistance and push BTC back into its macro accumulation range, according to the analyst.
On-chain data also showed signs of pressure among newer Bitcoin investors. CryptoQuant contributor Amr Taha reported that short-term holders transferred approximately 55,600 BTC to exchanges at a loss on Thursday. Short-term holders are generally defined as investors who have held their coins for up to six months.
Moving Bitcoin to exchanges at a loss can indicate that investors are preparing to sell after prices fall below their previous acquisition levels. However, the transfers do not necessarily mean that all the coins were sold.
CryptoQuant noted that loss-driven transfers exceeded levels recorded on June 26, when Bitcoin traded below $60,000 for a second consecutive day. Despite the latest selling pressure, the report said that heavy losses among short-term investors can sometimes signal capitulation, potentially reducing selling pressure from weaker holders and creating conditions for a recovery.
