Bitcoin Rally Reverses, Wiping Out $295 M in Long Positions

Bitcoin erased its recent gains on Friday, dropping from an intraday high of $82,281 to near $79,500 after a surprise U.S. employment report. The move knocked the cryptocurrency’s market capitalization down to about $1.57 trillion, down from $1.62 trillion earlier in the day.

Sharp Pullback and Recovery

After climbing above $82,000 for the first time in three months, Bitcoin lost momentum and slipped below $78,700 before rebounding to just under $79,500 by early afternoon. The 24‑hour price decline exceeded 2%.

Liquidations Across the Market

Long‑position traders were hit hard. Data from Coinglass showed that long liquidations accounted for roughly 55% of the $193 million in leveraged positions liquidated by midday, contributing to a total of more than $295 million in long liquidations across crypto markets. Short liquidations totaled about $213 million.

Impact of U.S. Jobs Data

The sell‑off was triggered by a U.S. jobs report that added 336,000 jobs, far above the 170,000‑180,000 forecast, while unemployment remained at 3.8%. Analysts said the strong labor market reduces expectations of a Federal Reserve rate cut, prompting risk‑off selling in both equities and crypto.

Outlook from Market Commentators

Despite the pullback, some commentators, such as Raoul Pal, continue to argue that currency debasement will support Bitcoin’s long‑term upside, citing its historical outperformance relative to traditional assets.