Bitcoin Dips to $82,000, Leading to $2 Billion in Liquidations
•Cryptocurrency
Market Update: Bitcoin's Price Decline
Bitcoin's value decreased to $82,000 early Friday, resulting in nearly $2 billion in leveraged liquidations over the last 24 hours. The decline follows a week of volatility, where Bitcoin previously reached a peak of around $126,199.
Key Factors
- The decline was exacerbated by significant ETF outflows and a prevailing risk-off sentiment.
- These conditions led to forced liquidations, primarily affecting long positions in the crypto market.
Expert Insights
Arthur Hayes, co-founder of BitMEX, had foreseen potential liquidity tightening and credit stress, predicting Bitcoin could fall into the mid-$80,000 range. Hayes anticipated a 10–20% drop in equities and a spike in the 10-year yield, potentially triggering emergency liquidity measures that might later propel Bitcoin to $200,000–$250,000.
Additionally, Hayes observed that key demand drivers like ETF basis trades and digital asset treasury flows have stalled, highlighting a genuine liquidity crunch.