BTC plunge wipes out over $1.7B longs

TLDR

Bitcoins latest drop triggered a massive leverage flush that erased over 1.7 billion USD of mainly long positions across the crypto market.

1. Bitcoin (BTC) fell to around 81,000 USD as roughly 1.7 billion USD of leveraged positions were liquidated in 24 hours, with over 90 percent coming from longs.
2. The selloff combined overcrowded bullish leverage with macro stress, including Fed chair uncertainty, geopolitical tensions, weak tech earnings and heavy BTC and ETH ETF outflows.
3. Key signals now are whether BTC holds support near 80,000 USD, how derivatives leverage resets and whether ETF and macro flows stay negative or begin to stabilize.

Deep Dive

1. How Big The Liquidations Were

Data from derivatives trackers shows about 1.68 to 1.71 billion USD in leveraged crypto positions were liquidated in 24 hours, with long positions making up around 1.56 to 1.6 billion USD of that total. Reports note roughly 270,000 to 280,000 traders were forced out, and the largest single hit was an 80.5 million USD BTC USDT position on HTX.

Bitcoin accounted for roughly 780 million USD of liquidations and Ethereum (ETH) about 414 million USD, with major altcoins like XRP and Solana also seeing sharp forced unwinds as prices dropped 6 to 10 percent across the board. These moves are documented in coverage of the 1.7 billion dollar wipeout.

2. Why BTC Crashed So Hard

Analysts emphasize positioning rather than a single new bearish catalyst. Funding rates and open interest had been elevated, indicating crowded longs, so once BTC started dropping, margin calls and forced selling cascaded through derivatives books.

Macro shocks amplified the move. Markets reacted to reports that President Donald Trump plans to nominate Kevin Warsh, seen as relatively hawkish, as the next Fed chair, plus new tariffs and Middle East tensions, all of which pushed investors toward risk reduction. Crypto outlets also highlight Microsofts earnings driven tech selloff as part of a broader risk asset shakeout, and note that BTC and ETH spot ETFs saw hundreds of millions of dollars of net outflows during the same window, according to market crash analysis.

3. What To Watch From Here

1. Key price zones: Many commentators highlight the 80,000 USD area as near term support, with some eyeing the mid 70,000s as the next downside zone if that level fails.
2. Leverage reset: Monitor futures funding rates and total open interest. A continued drop in open interest and normalized or negative funding suggests speculative excess is being cleaned up.
3. Flows and macro: Watch spot BTC and ETH ETF flows, stablecoin supply and the eventual confirmation or rejection of the expected Fed chair nominee. Persistent ETF outflows and risk off headlines, noted in broader selloff coverage, would keep pressure on crypto.

Conclusion

BTCs plunge and the 1.7 billion USD long wipeout reflect a harsh interaction between crowded leverage and a sudden shift toward macro risk aversion. If leverage and ETF outflows continue to normalize without new shocks, the flush could set a cleaner base for future moves, but until macro and flow signals improve, volatility and downside risk remain elevated.