Crypto market suffers $700m liquidation as bitcoin falls amid global turmoil

Major cryptocurrencies plunged further Friday after a multi-day slump, wiping out over $700 million in leveraged positions due to growing global turmoil and a disappointing U.S. jobs report.

Bitcoin, which neared $120,000 earlier in the week, has fallen to $114,000—down 5.6%. Ethereum dropped even more sharply, slipping from $4,000 to $3,500, a 10% loss. Over 160,000 traders were liquidated, with long positions accounting for more than $600 million of the $708 million total.

Market sentiment took a hit following the controversial release of the U.S. jobs report, which led to the dismissal of the official responsible just hours later. The White House’s sweeping new tariffs and former President Trump’s remarks about deploying nuclear submarines near Russian waters added to investor anxiety, triggering massive selloffs.

Analysts expect Bitcoin could fall to around $80,000 before a potential rebound in Q4. Glassnode noted last week that a drop below $110,000 could accelerate the selloff. The total crypto market has lost nearly $500 billion.

The Crypto Fear & Greed Index dropped to 55, showing a shift from bullish optimism to caution. Investors appear more focused on risk minimization amid rising volatility and economic uncertainty.

Despite Trump’s calls for lower interest rates, the Fed has kept its range between 4% and 5%. While two Fed officials advocated for modest cuts, the majority stood firm. Speculation is mounting over who Trump might nominate to replace Chair Jerome Powell when his term ends in May 2026.