Bitcoin flash crashes below $78,000 at Europe market open with nearly $295 million in crypto liquidations
Bitcoin dropped below $78,000 with significant liquidations, as Europe markets opened, with the cause still unclear.Summary
Bitcoin experienced a flash crash, falling below $78,000 as European markets opened, with approximately $295 million in crypto liquidations occurring over the preceding 24 hours. The price reached $77,819, a 0.28% decrease in 24 hours. This drop occurred without any immediate new macro, regulatory, exchange, ETF, or issuer headlines, leading to uncertainty about whether it was a short-lived leverage flush or the beginning of a broader risk-off move. The $80,000 area had previously shown resistance, with Bitcoin failing to hold above $78,000 after touching that level. Analysts suggest that the immediate test is whether buyers absorb the drop around the mid-$77,000s, which would indicate a clearing event, or if the price fails there, signaling a broader reduction in risk. The liquidation data, showing $95.55 million in Bitcoin liquidations (split between longs and shorts), and activity clustered around the European open, supports a leverage and liquidity frame. The upcoming FOMC meeting and economic data releases add to macro pressure, potentially making buyers hesitant to add risk. The current situation is viewed as a technical pressure point with an unresolved catalyst, with the next price reaction determining if demand can absorb the damage or if it signals a wider risk reduction.
(Source：CryptoSlate)