Bitcoin prices fell sharply on Friday, touching their lowest level in more than two months, as a surge in forced liquidations hit highly leveraged traders. The selloff came as investors grew increasingly cautious about the potential market impact of an upcoming leadership change at the Federal Reserve.
The world’s largest cryptocurrency was last trading 6.4% lower at $82,620.3 by 02:15 ET (07:15 GMT). During the past 24 hours, Bitcoin briefly slid to $81,201.5, putting it close to testing lows last seen in April if losses were to deepen.
$1.7 billion in crypto liquidations fuels selloff
Market data from CoinGlass showed that approximately $1.68 billion worth of leveraged positions were liquidated over the last 24 hours. Around 93% of those liquidations came from long positions, where traders were betting on higher prices.
Roughly 270,000 traders saw their positions forcibly closed, intensifying the downward pressure on Bitcoin and spilling over into the broader cryptocurrency market.
Liquidations occur when crypto exchanges automatically close leveraged positions that fail to meet margin requirements as prices move against traders. These forced exits often amplify volatility and accelerate price declines during risk-off market conditions.
Markets focus on Trump’s Fed chair decision
Friday’s decline also coincided with growing uncertainty around U.S. monetary policy leadership. President Donald Trump said he plans to announce his nominee to replace Fed Chair Jerome Powell on Friday morning.
Speculation has intensified that former Fed Governor Kevin Warsh could be tapped for the role. Reports suggest the White House is preparing to move forward with Warsh’s nomination.
Warsh is widely viewed as favoring a more restrictive approach to the Fed’s balance sheet and overall monetary policy. Such a shift could reduce liquidity conditions that have helped support risk assets, including cryptocurrencies.
As a result, financial markets have tilted toward a risk-off stance, with the U.S. dollar strengthening, bond yields rising, and digital assets facing renewed selling pressure.
Central bank policy plays a crucial role in shaping interest rates, liquidity, and investor risk appetite — all key drivers for high-volatility assets such as Bitcoin.
Altcoins slide as liquidation pressure spreads
The broader crypto market also came under heavy pressure on Friday, with most major altcoins extending losses.
Ethereum, the second-largest cryptocurrency by market value, fell more than 7% to $2,749.92. XRP also dropped around 7% to $1.75.
Elsewhere, Solana slid 6.5%, while Cardano plunged 8%. Polygon eased more than 5%.
Among meme tokens, Dogecoin fell 6%, while TRUMP retreated 3.5%.
