Bitcoin corrected 2.2% to $79,700 over the past 24 hours, hitting its lowest level in more than a month. The price weakness spread to other major cryptocurrencies: Solana plunged below $100, XRP fell below $1.30, and Ethereum slipped below $2,350, with average altcoin losses ranging between 3% and 4%.
The spot price correction immediately triggered forced closures of highly leveraged speculative positions across derivatives exchanges.
Derivatives Liquidations Surpass $838 Million
Data from WatcherGuru showed leveraged long liquidations exceeded $200 million in just 60 minutes. At the same time, Cointelegraph data revealed $186 million in long liquidations within an hour after Bitcoin slipped below the $80,000 level. Over a 24-hour period, market-wide forced liquidations reached $838 million.
The massive liquidation volume accelerated the pace of the price decline, wiping out capital from traders betting on market upside before they could add margin.
Evacuation of US Military Personnel in the Middle East
The primary trigger behind this market turmoil stemmed from a report by The Wall Street Journal regarding the global security situation. The United States government reportedly began relocating diplomatic staff and military troops from various bases across the Middle East. The evacuation decision followed intelligence reports indicating planned Iranian attacks targeting Americans.
The scope of the personnel withdrawal went beyond earlier reports concerning a partial drawdown of embassy staff in Saudi Arabia. Tensions became increasingly evident through a memo from Director of National Intelligence Jay Clayton to Secretary of State Marco Rubio.
In the memo, Clayton wrote: “Iran has substantially increased efforts to target US personnel. Lethal plotting against Americans by Iran has reached an advanced stage in the Middle East and certain other countries.”
CZ Comments as Bitcoin Death Narrative Resurfaces
Tensions intensified further after President Donald Trump signaled heightened escalation against Iran following the midterm elections in early November. Addressing the situation, Trump stated: “We may do a little ‘Epic Fury’ again.”
Amid the spreading panic, Binance founder Changpeng Zhao (CZ) pointed to the market’s historical track record. CZ stated that whenever the public labeled Bitcoin as “dead” in the past, those periods actually presented the best buying opportunities. For traders relying on leveraged positions, this weekend’s turmoil served as a stark reminder of how geopolitical tensions can wipe out borrowed capital in minutes.
Reported by CoinDesk.
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Previously: Crypto Liquidations Surpass $435 Million as Yen Strengthens - $100 Oil and ETF Outflows Weigh on Market
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
