Bitcoin Dives Back to $77K, Triggering $500M in Liquidations

The extreme volatility on crypto markets is back. After a rally of almost 30% in five days, Bitcoin is running into solid selling pressure around $79.500. Within a short space of time the price falls back towards $77.000, while Ethereum and XRP also slide hard. The sudden reversal is particularly costly for traders holding long positions, wiping out hundreds of millions of dollars.

Nearly $500 million in longs evaporates in one hour

Bitcoin’s rise over the past few days has been exceptionally fast. From the recent low, BTC shot up almost 30% and the price reached roughly $79.500. According to the market data supplied, that put Bitcoin at its most overbought level since November 2024.

Sentiment then turns abruptly. Bitcoin loses about 2.85% within minutes and drops back towards $77.000. Ethereum takes a bigger hit of 5.72%, while XRP falls by around 21% during the sudden move.

For leveraged traders, that move has major consequences. In one hour, $528.76 million worth of positions is liquidated, according to the liquidation data. Of that, as much as $478.51 million consists of longs. Shorts account for roughly $50.26 million.

Over four hours, total liquidations climb further to $671.37 million, nearly $500 million of which is long positions.

Rally gives way to extreme volatility

The move is striking because shorts were earlier hit en masse by Bitcoin’s strong rally. Across the full past 24 hours, liquidations amount to about $1.82 billion. Of that, $1.04 billion comes from shorts and $783.55 million from longs.

That shows how quickly the market is changing direction right now. First, bearish traders are squeezed out of their positions by the explosive rally, then a sharp correction hits the traders who went long with leverage after the surge.

The pullback does not, by itself, have to mean the end of the recent rebound. After a rise of almost 30% in five days, a correction can emerge as investors take profits and excessive leverage is flushed out of the market.

What the move does make clear is how much risk currently sits in short-term positions. Bitcoin moves thousands of dollars in a short period, while altcoins show far bigger swings. The XRP decline in particular shows how aggressively liquidations and thin liquidity can amplify a sudden move.

After the rejection around $79.500, attention now turns back to $77.000 and the question of whether buyers will provide enough support there.