Bitcoin sell-off triggers $2.6bn in forced liquidations as risk appetite evaporates
A sharp retreat from risk assets has dragged cryptocurrencies lower, wiping out billions in leveraged bitcoin positions and underlining how closely the market is now tied to swings in broader investor sentiment.
Bitcoin markets have seen an estimated $2.6 billion in leveraged positions wiped out in recent days, as a broader sell-off in risk assets spread from equities and precious metals into cryptocurrencies.
While the scale of the liquidations is far smaller than the roughly $19 billion flushed out of crypto markets earlier this year following trade-related shocks, the latest move underscores how sensitive digital assets have become to shifts in global risk appetite.
Crypto pulled into a wider risk-off move
Bitcoin’s slide has mirrored weakness across other risk assets, challenging the idea that cryptocurrencies reliably act as a safe haven during periods of market stress.
Recent pressure has been driven by renewed doubts over the AI investment cycle, alongside sharp moves in precious metals after political developments raised expectations of tighter monetary conditions.
Market participants say the past few months have been characterised by a broad reassessment of risk, with investors reducing exposure as uncertainty across multiple asset classes increases.
From record highs to steep losses
Bitcoin fell to around $104,783 during the October 10–11 period, only days after setting a record above $126,000. It has yet to regain those levels and was last trading near $78,396, after dropping more than 6% over the weekend.
Thin weekend trading conditions amplified the sell-off, exacerbating price swings as liquidity dried up.
External shocks driving volatility
At current levels, bitcoin’s biggest vulnerabilities are being driven by forces outside the crypto market itself, including concerns about the health of the global economy and the durability of AI-driven investment.
Those worries intensified last week after disappointing earnings from a major technology company raised fresh questions about whether spending on artificial intelligence can be sustained at current levels.
Metals slump adds to market strain
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The risk-off mood deepened after a sharp sell-off in precious metals, with silver suffering its worst single-day performance on record and gold posting its steepest daily decline in decades.
With multiple shocks landing at once, investors moved quickly to cut exposure, accelerating losses across markets.
