Bitcoin investors have liquidated about $2.56 billion in recent days, according to data from CoinGlass, as cryptocurrencies slid alongside a broader sell-off in risk assets such as equities and precious metals.
While the wipeouts in both long and short positions remain well below the $19 billion liquidation record seen after U.S. tariff announcements earlier this year, analysts say the episode underscores how sensitive crypto markets have become to shifts in risk appetite.
Recent pressure has been amplified by renewed concerns around the AI trade and turmoil in precious metals after President Donald Trump said he would nominate Kevin Warsh as the next Federal Reserve chair.
“What we’ve seen over the last few months is investors stepping back to reassess their risk frameworks,” said Adam McCarthy, senior research analyst at Kaiko.
Bitcoin fell as low as $104,782.88 during the October 10–11 period, shortly after hitting a fresh record above $126,000. It has yet to recover those highs.
The cryptocurrency was last trading near $78,396, down more than 6% on Saturday, with thin weekend liquidity exacerbating losses, according to analysts at Bitfinex.
Broader market sentiment also weakened after disappointing earnings from Microsoft, which reignited doubts over AI spending, while expectations that Warsh could pursue rate cuts alongside tighter balance-sheet policy fueled volatility across asset classes.
“The biggest risks to prices right now are external macro forces,” said Jim Ferraioli of Charles Schwab, as investors seized what one analyst called a long-awaited excuse to reduce exposure.
