Crypto Liquidations Surge Past $260M as Bitcoin Hits $77K

Bitcoin briefly rose above $77,000 on Thursday, breaking a recent downtrend and ending the day near $76,600. The price movement occurred amid a 25‑basis‑point Federal Reserve rate hike and ongoing uncertainty around U.S. cryptocurrency legislation.

Price Action and Market Recovery

According to Bitstamp data, Bitcoin traded sideways around $76,000 on Wednesday, with that level shifting from resistance to support after 7 p.m. The coin surged past $77,000 early Thursday, fell below $76,000, then rallied again before stabilising near $76,200. By noon EST, the price hovered above $76,600 and posted a modest 1% daily gain, keeping its market capitalisation at roughly $1.54 trillion.

Liquidation Activity

The volatility triggered significant liquidation activity across the crypto market. Short positions faced over $260 million in liquidations, while long positions saw about $138 million liquidated. Within Bitcoin’s own market, short liquidations amounted to roughly $66 million compared with $32 million in long liquidations.

Regulatory Context

The Senate’s failure to pass the CLARITY Act left DeFi protocols such as Curve Finance in regulatory limbo. Lawmakers cited disagreements over presidential ethics and divestment requirements as reasons for the vote’s outcome. Curve Finance noted that the bill, if enacted, could clarify which protocols are considered decentralized, affecting how regulated institutions interact with DeFi.