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Bitcoin tumbles to nine-month low amid market shock
Bitcoin plunged to roughly $81,000 on Friday, marking its lowest level in nine months and sparking a wave of forced liquidations across the crypto derivatives market. The sell-off intensified after a mix of geopolitical escalation, fresh tariff threats, and disappointing tech earnings prompted traders to reduce risk exposure.
Mass liquidations as traders unwind long positions
Data from CoinGlass shows that about 270,000 traders were liquidated in the past 24 hours, with total liquidations reaching approximately $1.68 billion. Around 93% of those liquidations were leveraged long positions, concentrated in Bitcoin (BTC) and Ether (ETH). BTC prices dipped to $81,058 on Coinbase in early trading, down roughly 35% from the October all-time high near $126,000, according to TradingView.
Technical outlook: support zones and market cap impact
Bitcoin now sits at a key monthly support zone after hitting an April-like low. The broader crypto market rout erased about $200 billion from total capitalization within a single day, signaling heightened volatility for spot markets, futures, and derivatives. Traders and analysts are watching BTC’s monthly chart closely for signs of stabilization or further downside.
BTC falls back to April lows.
Geopolitics and tariff risks amplify risk-off sentiment
Heightened tensions in the Middle East contributed to the risk-off mood as the U.S. dispatched additional naval assets to the region. Statements indicating the U.S. planned to engage diplomatically with Tehran did little to calm markets. Concurrently, an executive order announcing potential tariffs on goods from countries that sell or provide oil to Cuba stoked broader macro concerns.
Commodities weren’t spared: gold and silver also corrected after recent highs, with gold showing a notable pullback. These moves underscore how geopolitical and policy actions can ripple through safe-haven and risk assets alike, including crypto.
Tech earnings slump and AI fears deepen sell-off
Disappointing results from major tech companies added to the pressure. Microsoft’s earnings miss and subsequent sharp stock decline fueled fears that AI-related growth expectations may be cooling, prompting some investors to de-risk portfolios. Jeff Mei, COO at BTSE, noted a clear correlation between tech revenue concerns and the crypto market dip, as investors rotate away from growth-sensitive assets.
Market view: opportunity or further downside?
While some analysts call the reaction overblown given Bitcoin’s steady decline since October, others warn of continued volatility until macro and geopolitical clarity returns. For long-term crypto investors, current prices may present buying opportunities, but leveraged traders remain highly exposed until clear technical support holds.
Market participants should monitor derivatives open interest, liquidations reports, and macro headlines closely to navigate the heightened market risk.
Source: cointelegraph
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