Bitcoin Breaks $80K Floor, Triggers $2.6B Liquidation Wave

Bitcoin slipped below the critical $80,000 support zone, sliding to a nine-month low and setting off a cascade of forced liquidations across derivatives markets. The move erased roughly $2.6 billion in leveraged positions as prices briefly dipped to $77,082 before stabilizing.

The drop marked the first time since April 2025 that Bitcoin has traded at these levels, pushing the asset beneath several key on-chain benchmarks that have historically defined market cycles. Notably, Bitcoin fell under its True Market Mean—around $80,500—for the first time in roughly 30 months, a development often associated with a shift from a bullish phase into a mid-term bear environment.

Pressure is mounting on recent buyers. Bitcoin’s Short-Term Holder Cost Basis has risen to about $95,400, while the Active Investor Mean sits near $87,300. With spot prices well below both levels, a large portion of the market is now sitting on unrealized losses, creating an overhang that could limit near-term upside.

The technical breakdown sparked a sharp deleveraging event. Liquidation data show approximately $2.58 billion in positions were wiped out in a matter of hours, with long bets accounting for the vast majority—around $2.42 billion—making it the largest long-side flush in three months.

Ethereum traders were hit hardest, suffering about $1.15 billion in liquidations, while Bitcoin-linked positions accounted for more than $772 million. The imbalance underscores how aggressively traders attempted to defend the $80,000 level before downside momentum accelerated.

Behind the selloff, market data point to weakening buyer demand. Measures of realized value indicate that fresh capital inflows have stalled, suggesting that the fuel needed to sustain the prior uptrend has dried up. At the same time, profit-taking from earlier entrants continues, with limited new demand stepping in to absorb supply.

With leverage flushed and liquidity thin, the market now appears headed for a prolonged period of consolidation as participants search for a durable price floor.