Over $2.6 billion in Bitcoin positions vanished Saturday as the digital currency plummeted 6% below $80,000, reaching a nine-month low of $77,082. Hardware wallets across the globe probably sent those anxiety-inducing price alerts that make crypto holders question every investment decision they’ve ever made.
The carnage hit leveraged traders hardest. Long positions accounted for $2.42 billion of the liquidations, according to CoinGlass data. Weekend trading’s thin liquidity turned what might have been a modest dip into a full-scale rout, breaching the critical True Market Mean at $80,500—a technical level that hadn’t been touched in 30 months.
Microsoft’s Friday earnings triggered the initial selling wave. Despite Azure’s 39% revenue growth beating estimates, investors deemed it underwhelming for an AI market that’s been pricing in perfection. The disappointment spread faster than a viral TikTok trend, pulling down tech stocks and crypto alike. As Jim Ferraioli from Schwab noted, “The biggest risk” includes “deterioration of the AI trade.”
Trump’s nomination of Kevin Warsh for Fed chair amplified the chaos. Gold suffered its steepest daily fall since 1983, while silver posted its worst day ever. When even precious metals can’t catch a bid, crypto’s risk-asset status becomes painfully obvious. Diversified portfolios suddenly looked less diversified.
Bitcoin’s drawdown now approaches 38-40% from its October 2025 peak of $126,296. Nearly half of all Bitcoin supply sits underwater, creating a feedback loop of unrealized losses and forced selling. “Buyer liquidity has simply vanished,” according to CryptoQuant CEO Ki Young Ju.
ETF cost basis around $70,000-$84,000 might provide support, but recent outflows suggest institutional appetite has cooled. Crypto enthusiasts tracking positions through trading apps or hardware wallets should watch for potential tests of $56,000-$58,000 cycle bottoms. The bull-to-bear transition signals suggest this isn’t just another weekend dip—it’s a fundamental shift in market structure that could reshape 2026 investment strategies.
