Bitcoin Bulls Get Routed as Liquidations Top $2.5B and Saylor Digs In at $80,000

When Bitcoin bulls woke up this weekend, they probably wished they hadn’t. The world’s favorite digital asset did what it does best—obliterate leveraged longs and remind everyone that gravity is undefeated. In the past 24 hours, Bitcoin’s price crashed below $80,000, triggering a liquidation cascade that wiped out $2.5 billion in open interest. If you thought the days of crypto carnage were behind us, think again. This was one of the most violent liquidation events in recent memory, and the aftershocks are still rippling through the market.

Let’s get to the carnage: Bitcoin’s sharp drop below $80,000 was the tripwire. Algos went haywire, forced liquidations snowballed, and the price briefly nosedived before finding some footing. According to Bitcoinist, this was “one of the most violent liquidation events in crypto history.” Michael Saylor’s MicroStrategy position, once the poster child for diamond hands, briefly dipped into the red. Saylor, never one to let a margin call go quietly, cryptically hinted at fresh Bitcoin buys on X (formerly Twitter), even as the market mocked his conviction.

It wasn’t just Bitcoin feeling the pain. Dogecoin crashed 16% in four days, XRP cratered 60% from its highs, and miners are now under heavy pressure as hashprice sits near yearly lows. The entire crypto complex is wobbling. Altcoins like HYPE, CC, SOL, and WLFI managed to buck the trend, but the majors are in the penalty box.

The narrative has shifted from “hopium” to “survival.” Analyst Eric Crown warned on CoinDesk that “this weekend’s slide could be just the beginning,” with the risk of further downside stretching out for months. CryptoQuant’s CEO tried to calm nerves, arguing that MicroStrategy’s position prevents a traditional bear market collapse. But with $2.5 billion in liquidations and miners bleeding cash, that’s cold comfort.

Zoom out, and the context is brutal. Bitcoin’s run to all-time highs was fueled by leverage, ETF inflows, and a relentless risk-on bid. Now, with liquidity tightening across risk assets and Treasury supply draining cash from the system, the tide has turned. The market is finally being forced to reckon with the cost of leverage. Miners, who were printing money at last year’s hashprice peak, are now staring down the barrel of negative margins. Tether’s profits are dropping as Treasury holdings and USDt supply surge, raising fresh questions about stablecoin liquidity.

The cross-asset picture is ugly. Equities are stalling, commodities are flat, and crypto is leading the way down. The days of easy money are over, and the market is punishing anyone caught leaning the wrong way. The only winners are the shorts and the few altcoins that managed to avoid the bloodbath.

The analysis is clear: Bitcoin is in the early innings of a deleveraging cycle. The forced liquidations have cleared out some of the froth, but there’s no sign of a durable bottom yet. Saylor’s bravado might inspire the faithful, but the market doesn’t care about memes—it cares about liquidity. Until the forced sellers are flushed out and miners can breathe again, the path of least resistance is lower.

Strykr Watch

Technically, Bitcoin is hanging by a thread. The $80,000 level is now resistance, with support at $77,500 and a must-hold line at $75,000. If that breaks, the next stop is $72,000. RSI is deeply oversold, but that’s not a buy signal in a liquidation-driven market. Volume is spiking, a classic sign of capitulation, but there’s no sign of real accumulation yet.

Watch for miner capitulation as a bottoming signal. If hashprice keeps dropping, expect forced selling from miners to accelerate. Stablecoin flows are another key tell—if Tether redemptions spike, brace for another leg down. On the upside, a clean reclaim of $80,000 would force shorts to cover, but that’s a tall order with sentiment this battered.

If Bitcoin can stabilize above $77,500 and miners stop selling, there’s a shot at a relief rally. But if forced liquidations continue, the floor could drop out fast.

The risks are obvious: more liquidations, miner capitulation, and stablecoin wobbles. The opportunities? Only for the brave (or the masochistic). A bounce to $82,000 is possible, but only if the selling abates and Saylor’s “buy the dip” army shows up in force.

Strykr Take

This is not the time to play hero. Bitcoin is in the crosshairs of a classic deleveraging event, and the pain isn’t over. Wait for real signs of stabilization before stepping in. If you must trade, keep your stops tight and your position size smaller than your ego. The market doesn’t care about your conviction—it cares about liquidity, and right now, that’s in short supply.