Bitcoin Slides to $78,000 as Over $500 Million in Longs Get Liquidated

• Bitcoin dropped about 3.2% over 24 hours to near $78,000, reversing gains from the prior week when it briefly topped $82,000.
• Over $581 million in crypto positions liquidated, with ~95% from long bets led by BTC and ETH.
• Broad risk-off move tied to hotter inflation data, surging bond yields, and spot Bitcoin ETF outflows.
• Altcoins hit harder: SOL and XRP down ~5%, ETH ~3.3%.

Bitcoin tumbled to around $78,000 on May 16, erasing the previous week’s gains and sparking a sharp deleveraging across derivatives markets. The move aligned with broader risk-off sentiment in traditional markets, including the S&P 500’s worst session since March and rising U.S. Treasury yields.

The liquidation cascade was significant. CoinGlass data showed approximately $581 million wiped out in 24 hours, with $552 million from long positions. Bitcoin accounted for $189 million in liquidations, followed by Ether at $151 million. The largest single wick was a $21.59 million BTCUSDT position on Bitget.

This flush occurred as leveraged bulls, who had built up positions expecting continued upside, faced cascading stops. BTC fell from above $80,000 levels, dragging major assets lower: Solana dropped 5% to around $87, XRP lost over 4% to $1.41, and Ether declined 3.3% to roughly $2,189.

Macro pressures amplified the selloff. Hotter-than-expected inflation prints, elevated oil prices linked to geopolitical tensions, and climbing bond yields (U.S. 10-year above 4.5%) shifted expectations away from Federal Reserve rate cuts toward potential hikes. Crypto, sensitive to liquidity narratives, repriced accordingly.

Adding to the pressure, on-chain data from Arkham Intelligence highlighted outflows from addresses tied to BlackRock’s iShares Bitcoin Trust (IBIT), contributing to over $1 billion in weekly spot Bitcoin ETF outflows—the largest in weeks and snapping a prior inflow streak.

Despite the sharp move, some analysts viewed it as a healthy leverage flush rather than a fundamental shift, noting Bitcoin’s resilience near key support levels. However, sustained risk-off flows could test lower supports if macro conditions deteriorate further.

In the CoinDesk report, the drop was explicitly linked to the long-skewed positioning meeting a macro reversal.

Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.

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