Long positions took a $500 million hit this week as Bitcoin slid to $78,000, triggering a cascade of liquidations across major tokens. Solana and XRP each fell 5% in the same move. The selloff ran parallel to a broader risk-off shift that saw U.S. stocks record their worst session since March.
The $500 million flush
Over-leveraged longs got crushed. The liquidation cascade swept through major exchanges as Bitcoin's decline accelerated, forcing the closure of leveraged positions. The bulk of the damage was in long contracts, which had been piled on during the recent rally. When Bitcoin broke below $80,000, margin calls started hitting in waves. By the time the dust settled, roughly half a billion dollars in long positions had been wiped out.
Bitcoin at $78,000
The largest cryptocurrency touched an intraday low of $78,000, a level not seen in weeks. The drop came with volume, but buyers stepped in near the bottom, briefly pushing price back above $79,000. Still, the move erased gains from the prior two sessions and left traders questioning whether the selling is done. Bitcoin's dominance in the liquidation data suggests the broader market took its cue from BTC's slide.
Solana and XRP feel the heat
Solana and XRP each shed 5% during the downturn. Both tokens had been outperforming earlier in the week, making them especially vulnerable when leverage started to unwind. The synchronized drop across altcoins points to a market-wide deleveraging event rather than coin-specific news. For Solana, it was the biggest single-day decline this month. XRP followed closely behind.
Bonds and stocks join the slide
The crypto selloff didn't happen in isolation. A global bond selloff gathered steam, pushing yields higher, while U.S. equities recorded their worst trading day since March. The simultaneous risk-off move suggests macro factors — interest rate expectations or geopolitical jitters — are weighing on all asset classes. Crypto, which often trades as a risk-on bet, got swept up in the broader mood.
With half a billion in leverage cleared from the system, the immediate pain may be over. But traders are watching for any further macro triggers this week that could reignite selling pressure.
