Bitcoin’s momentum stalled on Thursday as the asset retreated from a peak of
$79,500 to consolidate around $78,000. This 1.2% dip marked the cryptocurrency’s first 24-hour loss in several days, resulting in a $10 billion decline in total market capitalization.
Market volatility triggered $218 million in liquidations, hurting overleveraged bitcoin long traders.
Market sentiment remains tethered to the escalating “economic warfare” in the Middle East. With direct military engagement temporarily paused, the conflict has pivoted toward maritime control in the Strait of Hormuz, where commercial vessels have been stranded for more than a month.
Still, despite the maritime tension, global equity markets remained largely unfazed. South Korea’s Kospi and France’s CAC 40 posted modest gains, while most other major indices were flat.
Bitcoin’s $1,000 intraday swing sent ripples through the derivatives market, though the carnage was milder than the previous session. The price dip triggered the liquidation of $35 million in long positions and approximately $23 million in shorts — a significant cooling off compared to the $207 million flushed out on Wednesday.
Across the broader crypto economy, total liquidations reached $218 million, with overleveraged long traders bearing the brunt of the volatility and accounting for $147 million of the total losses.