Bitcoin Crashes to $81,000 as $777M Gets Wiped in One Hour

$777 million. That's how much crypto long positions got liquidated in just one hour as Bitcoin crashed to $81,000, turning Thursday into a nightmare for leveraged traders.

The Great Unraveling

Bitcoin's relentless slide continued through Thursday evening US hours, plummeting to $81,000 before clawing back to around $82,000. The world's largest cryptocurrency has now shed nearly $10,000 over the past 24 hours, dangerously close to breaking its November low of just under $81,000.

The broader crypto market joined the bloodbath. Ethereum hovered around $2,700, BNB near $843, and XRP around $1.74 – all down 7% to 9% in 24 hours. Total liquidations reached a staggering $1.75 billion, with the bulk happening in the past hour.

According to CoinDesk analysis, Bitcoin falling below $85,000 signals further collapse ahead. The next major support level? The tariff-related April 2025 low of $75,000.

Trump's Fed Bombshell

The immediate catalyst for this crypto carnage? President Donald Trump's comments about naming his Federal Reserve chair nominee Friday morning. The mere suggestion sent shockwaves through markets already on edge.

Polymarket betting odds on Kevin Warsh becoming the next Fed chair exploded from 37% to 87% in just two hours. This sudden shift disappointed traders who had hoped for BlackRock'sRick Rieder – considered a more dovish choice who might have been friendlier to risk assets like crypto.

Warsh, a former Fed board member, was reportedly at the White House Thursday. His potential nomination suggests a more hawkish monetary policy stance, exactly what crypto bulls don't want to hear.

The Leverage Trap

This wasn't just a price drop – it was a liquidation cascade. When Bitcoin broke key technical levels, automated selling from leveraged positions accelerated the decline. The $777 million in hourly liquidations tells the story: too many traders were betting big with borrowed money.

The pattern is familiar yet brutal. Crypto's volatility makes it attractive for leverage trading, but that same leverage amplifies losses when sentiment shifts. Many traders who survived 2022's crypto winter thought they'd learned their lessons. Apparently not.

What's Really at Stake

Beyond the immediate pain, this crash raises deeper questions about crypto's maturation. If Bitcoin can lose $10,000 in value over Fed chair speculation, how can it serve as a reliable store of value? The "digital gold" narrative looks shaky when the asset behaves more like a high-beta tech stock.

For institutional investors who've been gradually warming to crypto, this volatility is a stark reminder of the risks. MicroStrategy, Tesla, and other corporate Bitcoin holders are watching billions evaporate from their balance sheets.