Crypto Black Friday: Bitcoin at $80K, $2B Longs Liquidated
Today’s sell-off has been dubbed a Crypto Black Friday across digital asset markets. Over $2 billion in long positions were liquidated in 24 hours. Bitcoin plunged toward the $80,000 level, hitting its lowest RSI reading in over 2.5 years. Major altcoins such as Ethereum, XRP, BNB, SOL, AVAX, ADA and DOGE were down sharply, many at multi-year lows. Institutional signals added to the risk-off mood: BlackRock transferred over $350 million in BTC and $117 million in ETH to Coinbase Prime. Crypto ETFs saw five-year high outflows as investors turned decisively bearish. Fed rate cut odds rose to 70% yet failed to stem the rout. Social sentiment hit extremes of capitulation. This Crypto Black Friday event was defined by forced selling and panic, and traders will watch $82K–$85K for stabilization or a drop below $80K for further declines.
Bearish
The overwhelming liquidation of over $2 billion in longs, a sharp Bitcoin drop to near $80K, and multi-year lows across major altcoins signal a classic capitulation event. Similar sell-offs occurred in May 2021 (China mining ban), November 2022 (FTX collapse) and March 2020 (COVID crash). Each was followed by volatile knee-jerk rebounds but required weeks of consolidation before recovery. ETF outflows and institutions moving large BTC and ETH deposits to exchanges point to sustained selling pressure. Positive macro news, like elevated Fed rate-cut odds, failed to buoy prices, underscoring a dominant fear-driven market. In the short term, traders are likely to remain cautious until key support at $80K–$82K holds. Long term, historical patterns suggest a rebound once forced liquidations subside and sentiment stabilizes, but the path could be uneven and protracted.