Bitcoin News Today: Bitcoin's Long Liquidations Surge $40M/Hour; Shorts Turn Profitable

Bitcoin's on-chain whale long positions have faced a devastating rout, with the largest unrealized losses surging to 870%, while short positions have turned uniformly profitable, according to recent data. The cryptocurrency's price has plunged below $90,000, erasing all 2025 gains and triggering widespread liquidations. The selloff has mirrored the April 2025 correction in percentage terms, though it has unfolded in roughly half the time.

The current downturn has pushed Bitcoin below its 2025 realized price of $103,227, leaving the average buyer with a 13% loss. This metric, which represents the average cost basis of coins held over the year, serves as a critical indicator of market sentiment. When Bitcoin dipped to $76,000 during the April correction, the realized price was $70,000, meaning the spot price never breached it - a dynamic that did not repeat this time.

The liquidation frenzy has been severe. Over $40 million in long positions were lost in a single hour, with total long liquidations exceeding $77 million over four hours. Bitcoin accounted for the bulk of these losses, followed by Ethereum and smaller-cap assets like Solana and Dogecoin. The crash has also triggered broader market panic, with the entire crypto market shedding over 25% of its value in weeks, trimming more than $600 billion in combined market capitalization.

Analysts point to several factors driving the selloff. The Treasury General Account's delayed liquidity release post-shutdown has exacerbated downward pressure, while political tensions - including Donald Trump's proposed $2,000 tariff dividend for mid-2026 - have heightened uncertainty. Some market participants speculate that the Federal Reserve's potential rate cuts and liquidity injections could stabilize prices, though others warn of prolonged volatility according to market analysis.

Technical indicators highlight a pivotal moment for Bitcoin. Immediate support is seen at $94,100, with stronger levels at $93,500 (the year's opening price) and the $89,000–$91,000 range. A breakdown below $85,000 would signal a trend reversal, invalidating bullish recovery scenarios. Conversely, if buyers absorb liquidity at these supports, a rebound toward $100,000 could materialize, though overcoming resistance at $98,300 remains a hurdle.

The market's extreme fear, as measured by volatility metrics, has created a high-risk environment for leveraged positions. Analysts caution against aggressive leverage amid ongoing price swings of 4–5%, which threaten overextended longs. Meanwhile, short-term traders are eyeing the $89,000 level as a key take-profit target, given the alignment of historical support and current on-chain dynamics.