Bitcoin (BTC) dipped below $81,000, sparking mass crypto liquidations as traders sent BTC to exchanges at a loss.Crypto liquidations hit nearly $1.1 billion over 24 hours after Bitcoin dropped to $80,350. Data from CoinGlass put total liquidations at $1.09 billion till 10 am UTC on Friday. This was the largest daily tally since Aug 21.Long positions accounted for $1.05 billion of Thursday’s total. The sell-off followed reports of the US government moving more than 12,000 BTC that it had previously confiscated.BTC/USD dropped to $80,350 on Bitstamp, its lowest level since Sept 18, before recovering to around $82,500 on Friday.On-chain data showed short-term holders sent 55,600 BTC to exchanges at a loss on Thursday, reported by CryptoQuant. Analyst Rekt Capital warned that weekly close below $82,500 could turn it into resistance.Historically, aggressive loss-driven selling by short-term holders can signal capitulation and create conditions for recovery.Slug: bitcoin-55k-btc-1-1b-liquidation
