Bitcoin tumbled more than 6% on Friday, sliding to around $75,400, as a sharp selloff in U.S. technology stocks spilled into the cryptocurrency market. The move erased a brief recovery above $80,000 and triggered a wave of forced selling across leveraged positions.
Data from CoinGlass showed approximately $1.09 billion in crypto derivatives liquidations on Thursday, affecting roughly 211,000 traders. Most of those positions were bets on rising prices, and the cascade intensified as Bitcoin approached the $75,000 level.
Tech rout spills into crypto
The selloff followed a 5.52% plunge in the Nasdaq Composite on Thursday, as investors questioned the returns from massive AI investments. The Philadelphia Semiconductor Index lost around 12%, reflecting a sudden shift in sentiment. Democratic victories in the U.S. midterm elections raised concerns that greater regulatory scrutiny could delay data-centre construction, adding to worries about borrowing costs and stretched technology valuations.
Bitcoin often trades like a risk-sensitive asset during periods of market stress. Although advocates describe it as digital gold, leveraged investors can sell it alongside technology shares when liquidity tightens. FalconX markets co-head Joshua Lim told CoinDesk that fears of slower data-centre construction fueled selling, attributing Wednesday's rally to "a lot of short-covering into a well-telegraphed result."
Crypto-linked U.S. equities also suffered large declines, reinforcing the breadth of investors' retreat from risky assets. That helps explain why the rebound above $80,000 vanished so quickly, as a recovery fueled by short covering can reverse when broader confidence deteriorates.
Leverage deepens the crash
The $1.09 billion liquidation figure covers the wider cryptocurrency derivatives market. A separate Thursday CoinGlass snapshot put Bitcoin-specific liquidations near $281 million, with bullish positions accounting for most of the damage. Across cryptocurrencies, crypto.news reported $954 million in long liquidations and $127 million in shorts.
Liquidations happen when a leveraged trader's collateral no longer meets exchange requirements. Automatic sales can push prices lower, causing further forced closures and creating a cascade beyond the initial market shock. Bitcoin futures open interest fell below $26 billion from roughly $28 billion earlier on Thursday, suggesting that speculative positions were being closed or forcibly unwound.
GSR researcher Carlos Guzman told CoinDesk that a "pullback in risk appetite amplified by leverage" followed the relief rally. These totals measure closed positions, not necessarily realized losses, and do not establish what initially triggered the crash. Liquidation data also vary between exchanges and reporting windows.
Key support levels to watch
Buyers now face a test around $75,000. Analysts on Wednesday identified $75,001 as an important Fibonacci retracement level. A sustained break could expose the 200-day moving average, estimated near $73,188. Wintermute trader Jasper De Maere identified $73,000 and $68,000 as possible downside levels, CoinDesk reported Thursday.
These levels are scenarios, not certain outcomes, as moving averages change daily. Analysts also identified earlier support near $62,000, though reaching it would require a much deeper correction. A recovery through $78,000 and $80,000 would suggest returning demand. De Maere remained positive on medium-term adoption despite near-term risks.
Friday's U.S. jobs report, due at 8:30 a.m. New York time, could reshape Federal Reserve expectations. Strong employment might support yields; weak figures could ease pressure on risky assets.
This article is for informational purposes only and does not constitute financial advice.
