Bitcoin Slides to $83K as Heavy Liquidations and Fed Uncertainty Weigh

Bitcoin tumbled sharply on Friday, sliding to its lowest level in more than two months as forced liquidations swept through leveraged positions and investors assessed the potential implications of a change in U.S. Federal Reserve leadership.

The world’s largest cryptocurrency was last down 6.4% at $82,620.3 as of 02:15 ET (07:15 GMT). Prices touched an intraday low of $81,201.5, coming close to breaching the April lows had the selloff extended further.

Crypto Markets See $1.7 Billion in Liquidations

Data from CoinGlass showed that roughly $1.68 billion in leveraged positions were liquidated over the past 24 hours amid the selloff, with about 93% of those losses coming from long positions—traders positioned for higher prices.

Approximately 270,000 traders saw their positions forcibly closed, intensifying the decline across Bitcoin and the broader digital asset market.

Liquidations occur when exchanges automatically shut leveraged positions that fail to meet margin requirements as prices move against traders, a dynamic that often amplifies volatility and accelerates downside moves in risk-on markets.

Traders Watch Trump’s Pick for Fed Chair

Friday’s selloff coincided with rising market unease over U.S. monetary policy leadership. President Donald Trump said he would announce his choice to replace Federal Reserve Chair Jerome Powell on Friday morning, fueling speculation that former Fed Governor Kevin Warsh could be nominated for the role. Reports indicate the White House is preparing to put Warsh forward as the next Fed chair.

Warsh is widely viewed as favoring a tighter approach to the Fed’s balance sheet and overall policy stance, a shift that could drain liquidity that has supported risk assets, including cryptocurrencies.

Markets have responded with broader risk-off positioning, a firmer U.S. dollar, and rising yields, while crypto prices have come under renewed pressure. Central bank policy direction plays a crucial role in shaping interest rates, liquidity, and risk-asset valuations—key drivers for high-beta assets such as Bitcoin.

Altcoins Slide as Ether and XRP Fall 7%

Most altcoins also slumped on Friday as liquidation-driven selling rippled through the market.

Ethereum, the world’s second-largest cryptocurrency, fell more than 7% to $2,749.92, while XRP, the third-largest, also dropped 7% to $1.75.

Elsewhere, Solana slid 6.5%, Cardano plunged 8%, and Polygon retreated by more than 5%.

Among meme tokens, Dogecoin declined 6%, while $TRUMP fell 3.5%.

Sources: Investing