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A wave of liquidations hit crypto markets as long positions across major tokens faced heavy losses overnight. Bitcoin dropped to $78,000, while Solana (SOL) and XRP fell 5%, driven by a global bond selloff and a sharp decline in U.S. equities—the worst session since March. Leverage-driven traders saw over $500 million in losses as margin calls accelerated amid heightened volatility. The selloff reflects broader macroeconomic concerns, including rising bond yields and fears of a potential U.S. recession, which are spilling over into risk-on assets.
This downturn signals increased risk aversion among investors, with crypto markets acting as a barometer for global liquidity conditions. Traders are now monitoring whether central banks will intervene to stabilize markets or if the current bearish momentum will persist. The correlation between crypto and traditional asset classes has tightened, making macroeconomic data and central bank policies critical for near-term price action.
For investors, the focus shifts to upcoming Fed statements and inflation data, which could dictate the next major move. Institutional outflows and liquidation levels will also be key indicators. Retail traders should watch Bitcoin’s support at $75,000 and resistance at $83,000 to gauge potential reversals.
