Synopsis: Bitcoin plunged to $81,000 amid widespread market turmoil, losing nearly $10,000 in 24 hours and triggering $1.75 billion in liquidations across cryptocurrencies and global assets.
Bitcoin crashed to two-month lows on Thursday evening. The world’s leading digital currency dropped nearly $10,000 in just 24 hours. The stunning decline sent shockwaves through cryptocurrency markets and rattled investors worldwide.
The dramatic selloff caught many traders off guard. Bitcoin fell as low as $81,156 on major exchanges before recovering slightly to hover around $82,000. This marked the cryptocurrency’s worst performance since November 2025. The sharp downturn triggered massive liquidations across trading platforms.
Massive Liquidations Rock Crypto Markets
The sudden price collapse forced traders to close positions rapidly. More than $777 million in leveraged long positions were wiped out in just one hour. Over the past day, total liquidations surged to $1.75 billion, according to data from CoinGlass.
Bitcoin wasn’t the only cryptocurrency suffering heavy losses. Ethereum tumbled to approximately $2,700, representing a decline of roughly 7% to 9%. Other major digital assets followed suit. BNB dropped to around $843, while XRP slid to approximately $1.74. The broad market selloff indicated widespread investor concern.
Moreover, the selling pressure showed no signs of immediate relief. Bitcoin is now dangerously close to its November low of just under $81,000. If this support level fails, analysts warn the next floor could be $75,000. That level corresponds to the tariff-related low from April 2025.
Federal Reserve Chair
Political developments in Washington contributed to market nervousness. President Donald Trump announced plans to nominate a new Federal Reserve chair on Friday morning. Reports suggested former Fed Board member Kevin Warsh would receive the nomination.
Prediction markets reacted swiftly to the news. Polymarket betting odds on Warsh skyrocketed from 37% to 87% within two hours. This rapid shift disappointed some traders. Many had hoped Trump would select BlackRock’s Rick Rieder instead. Rieder is considered more dovish on monetary policy.
The speculation comes amid ongoing tensions between Trump and current Fed Chair Jerome Powell. Trump recently criticized Powell for refusing to cut interest rates. The president’s public pressure on the central bank has created additional market uncertainty.
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Gold’s Historic Crash
Bitcoin’s decline coincided with extraordinary movements in precious metals markets. Gold reached an all-time high of $5,600 earlier Thursday before collapsing. The precious metal lost $400 in just 30 minutes. This erased more value than Bitcoin’s entire market capitalization.
Silver experienced similarly volatile trading. These dramatic price swings shocked experienced market watchers. Crypto analyst Nic Puckrin called the moves “insane,” noting that gold and silver rarely display such erratic behavior.
“Gold and silver just don’t do this,” Puckrin stated. He suggested the unusual activity reflected deeper concerns about global financial stability. Investors and central banks appeared to be repositioning their portfolios. This behavior indicated preparations for potential economic turbulence ahead.
Crypto trader Michaël van de Poppe offered a more optimistic perspective. He noted that Bitcoin typically declines during panic selling episodes. However, he suggested that price levels below $84,000 could create attractive buying opportunities. Van de Poppe predicted Bitcoin might rebound once precious metals stabilize.
Critical Monthly Close for Bitcoin
Technical analysts closely monitor key price levels and timeframes. The monthly candle close has emerged as a crucial indicator. Keith Alan from Material Indicators emphasized the importance of Bitcoin’s position relative to the 2026 yearly open.
“A monthly close above the yearly open will fuel hopium for bulls,” Alan explained. However, a close below $87,500 could signal further downside. This scenario would put Bitcoin “on a path to Bearadise,” according to his analysis.
Earlier reports highlighted unusual activity on Bitcoin exchange order books. An unknown whale entity appeared to be suppressing prices through strategic order placement. This manipulation added another layer of complexity to market dynamics.
The convergence of multiple factors created perfect conditions for Thursday’s crash. Federal Reserve uncertainty, precious metals volatility, and technical selling combined to overwhelm buyers. Cryptocurrency markets now face a critical juncture as February draws to a close.
Investors remain divided on Bitcoin’s near-term prospects. Some view current prices as attractive entry points. Others worry that deeper losses lie ahead. The coming days will reveal whether Bitcoin can stabilize above critical support levels.
Written By Fazal Ul Vahab C H
