The cryptocurrency market suffered a violent sell-off late Thursday, with Bitcoin (BTC) plunging to a low of $81,000 before staging a tepid recovery to the $82,000 level. The sudden crash has wiped nearly $10,000 off the flagship asset’s value in just 24 hours.
The carnage was not limited to Bitcoin. Major altcoins saw sweeping declines of 7% to 9%, with Ether (ETH) struggling to hold $2,700, while BNB and XRP slid to $843 and $1.74, respectively.
According to data from CoinGlass, the volatility triggered a massive liquidation event. Over $777 million in leveraged “long” positions were forcibly closed in a single hour as the price floor dropped. Over the full 24-hour period, total liquidations surged to $1.75 billion, marking one of the most significant deleveraging events of 2026.
Analysts warn that the technical outlook remains grim. A CoinDesk analysis notes that Bitcoin is currently clinging to its November lows. Should support at the $81,000 mark fail to hold, the next major “safety net” is not expected until the $75,000 range—a level established during the tariff-induced volatility of April 2025.
The primary catalyst for the rout appears to be political rather than technical. Markets reacted sharply to reports that President Donald Trump is poised to nominate former Federal Reserve Governor Kevin Warsh to succeed current Fed Chair Jerome Powell.
Trump intensified the speculation late Thursday, telling reporters he would officially name his nominee on Friday morning. The announcement comes on the heels of the President’s latest public broadside against Powell, whom he lambasted for refusing to aggressively slash interest rates.
As the industry awaits the Friday morning announcement, all eyes remain on the $81,000 support level. If that line in the sand breaks, the “crypto spring” of early 2026 could be headed for a deep freeze.
