Bitcoin investors liquidated $2.56 billion in recent days as prices slid alongside equities and precious metals, according to data from CoinGlass. The sell-off followed a broader retreat from risk assets after a heavy flow of macro and corporate news unsettled markets.
Liquidations hit both long and short positions. Still, they remained well below the $19 billion wiped out after U.S. President Donald Trump announced new tariffs on China. Even so, analysts said the moves showed growing sensitivity to risk-off sentiment across crypto markets.
Bitcoin fell to $104,782.88 during the October 10–11 period after setting a record above $126,000 days earlier. The asset later dropped to around $78,396, reflecting a decline of more than 6% on Saturday alone.
The recent wipeouts came as investors reduced exposure across multiple asset classes. Equities weakened; precious metals also slid after Trump named Kevin Warsh as his nominee for Federal Reserve chair.
According to Reuters, markets faced a dense flow of negative signals last week. Disappointing earnings from Microsoft added pressure. On Wednesday, the company reported Azure cloud revenue growth only slightly above expectations.
Shares fell 10% the following day. That move fueled concerns around AI spending and rippled into other risk assets. Bitcoin moved lower as traders reduced leverage and exposure.
Adam McCarthy, a senior research analyst at Kaiko, said participants have stepped back to reassess risk frameworks. He noted that the market structure has grown more reactive to shifts in broader sentiment.
Expectations around monetary policy also shaped recent price action. Markets anticipate Warsh could favor rate cuts paired with tighter balance-sheet policy, a mix many view as hawkish. That announcement triggered sharp selling in gold and silver.
Silver posted its worst session on record, while gold suffered its steepest daily fall since 1983. David Morrison of Trade Nation said investors had waited for reasons to reduce exposure. Meanwhile, thin weekend liquidity intensified crypto losses. Analysts at Bitfinex said lower trading volumes amplified price swings during the sell-off.
The retail market experienced panic when Bitcoin prices dropped to approximately $84200. Social media platforms showed their highest level of negativity for 2026 as people experienced deep fear after the market crash.
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Extreme fear conditions reached confirmation through the CMC Fear and Greed Index. Santiment reported that retail traders tend to sell their assets during peak market pressure, while institutional investors take different selling actions. The current wave of market fear will function as a turning point if prices maintain their position at important market levels.
That question now shapes market debate as traders watch support zones closely. Some forecasts point to a possible short-term bottom near $70,000. Hasegawa of Bitbank said that level may act as a key reference point unless market conditions reset.
Others see deeper downside risks. John Blank, chief equity strategist at Zacks, said Bitcoin could fall to $40,000 this year, given the prior cycle highs and lows. Bitcoin has historically dropped 70% to 80% from record peaks during past crypto winters - a move to $40,000 would represent a roughly 70% fall from the October high of $126,000.
Bitcoin liquidations reached $2.56 billion as risk-off markets and thin liquidity deepened price swings. Macro shocks and falling confidence pressured crypto alongside equities and metals. With sentiment at extreme fear, traders now watch key levels closely while weighing further downside risks.