Bitcoin Price Rally Collapse Wipes Out $295M in Long Positions

Market Reversal Erases Gains

Bitcoin erased nearly all its recent gains Friday in a sharp sell-off, sparked by stronger-than-expected U.S. jobs data that experts warn diminishes the odds of a Federal Reserve rate cut sought by the Trump administration.

Overnight data showed bitcoin’s rally, which began Thursday morning, pushed the cryptocurrency above $82,000 for the first time in more than three months. After hitting an intraday peak of $82,281, it lost momentum and pulled back before finding support near $81,000.

The cryptocurrency maintained this range until 8:30 a.m. EST, when it suddenly plunged from just over $81,300 to $79,428 in less than 20 minutes. Moments after the sharp pullback, it fell below $78,700 around 10:50 a.m., only to reverse the losses less than an hour later. As of 12:14 p.m. EST, bitcoin hovered just below $79,500, translating to a loss of more than 2% in 24 hours. The reversal also sent its market capitalization tumbling to $1.57 trillion, just hours after it surpassed $1.62 trillion.

As expected, bitcoin’s sharp reversal caught long-position traders off guard. While short liquidations dominated before 8 a.m., the dynamic flipped less than four hours later. According to Coinglass, erased long positions made up nearly 55% of the roughly $193 million in leveraged positions liquidated by 12:23 p.m.