A massive leverage wipeout swept crypto markets as Bitcoin fell 6% and Ethereum dropped 9%.
Crypto markets experienced their most severe liquidation event of 2026 as over $2.5 billion in leveraged positions were wiped out in just 24 hours.
Bitcoin plunged below $79,000 on Saturday, marking a 6.1% decline that triggered a cascade of forced liquidations across cryptocurrency exchanges. Ethereum suffered even steeper losses, dropping approximately 9% to $2,445, while Solana shed 9.9% to trade at $105.50.
The selloff was amplified by an $850 million wave of long liquidations in futures markets, with stress spreading well beyond Bitcoin during thin weekend trading. A particularly significant ETH liquidation on Hyperliquid led the leverage-driven wipeout, pushing total liquidations past the $2.5 billion mark.
Bitcoin has now fallen to its lowest levels since April, dropping out of the global top 10 assets by market capitalization and falling below Tesla. Ether has declined to 56th place among global assets with a market cap just above $300 billion.
The liquidation cascade reveals just how overleveraged the crypto market had become during the recent consolidation period. With $2.5 billion wiped out in a single day, this represents one of the largest deleveraging events since the 2024 cycle began.
The selloff coincides with the strengthening U.S. dollar following President Trump's selection of Kevin Warsh as his choice for the next Federal Reserve chairman. Retail investors were also rattled by the sharp decline in silver on Friday, which marked the worst day for that market since March 1980.
Bitcoin fear sentiment has reached a 2026 high as the price trends toward $80,000. Social media chatter has turned sharply negative, with traders watching key support levels. For XRP, traders are monitoring $1.74 as near-term support after the $1.79 level broke down. The coming week will be critical as markets digest these developments and traders assess whether current levels will hold or if further downside awaits.
This is a developing story. Market conditions remain volatile and the situation may evolve rapidly as trading resumes on Monday.
Wall Street giant Citigroup projects Bitcoin could reach $143,000 within 12 months, citing ETF demand and regulatory tailwinds as key catalysts.
The largest US bank is assessing spot and derivatives trading services as regulatory clarity enables traditional finance to deepen crypto involvement.
Senator Boozman postpones Digital Asset Market Clarity Act from January 15 to final week of January to secure bipartisan support.
Disclaimer: News content is for informational purposes only and should not be considered financial advice. Market conditions can change rapidly. Always conduct your own research.
