Bitcoin Falls Below $78K as $550M in Longs Liquidated

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Saturday, May 16, 2026 Bitcoin Slips Below $78,000 Amid Heavy Liquidations Bitcoin fell sharply during trading on Saturday, dropping below the $78,000 level, as the cryptocurrency market faced a wave of leveraged position liquidations alongside growing concerns that U.S. interest rates may remain elevated for longer than expected.

Bitcoin drops below $78,000

At around 12:51 PM Saudi time, Bitcoin declined 3.2% over 24 hours to approximately $78,030, erasing gains made earlier in the week when it had traded above $82,000.

$550M+ in Crypto Liquidations

Data from CoinGlass showed that total liquidations across the crypto market reached approximately $581 million in 24 hours, with around $552 million (about 95%) coming from long positions.

Bitcoin accounted for roughly $189 million in liquidations, while Ether followed with about $151 million.

The sharp unwind reflects increased pressure on over-leveraged bullish positions as volatility rises across digital assets.

Interest Rate Concerns Pressure Risk Assets

The selloff came amid rising U.S. Treasury yields, with the 10-year yield climbing above 4.50%, fueling expectations that the Federal Reserve may delay rate cuts or potentially maintain restrictive policy if inflation remains persistent.

Higher interest rates typically weigh on risk-sensitive assets such as cryptocurrencies, as they reduce speculative appetite and increase the cost of leveraged trading.

Broader Macro Pressures Add to Market Stress

Additional pressure came from rising oil prices, which climbed above $105 per barrel amid ongoing geopolitical tensions in the Middle East and concerns over supply routes through the Strait of Hormuz.

This has reinforced inflation expectations, prompting investors to reassess global liquidity conditions and interest rate forecasts.

Altcoins Also Under Pressure

The broader crypto market also moved lower, with major altcoins posting losses:

• Ether fell 3.6% to $2,173.76
• XRP dropped 4.1% to $1.40
• Solana declined 5.5%
• BNB slipped 4.5%
• Cardano fell 4.8%
• Dogecoin dropped 4.3%

Bhutan Denies Selling Bitcoin Holdings

In a separate development, data from Arkham Intelligence suggested that Bhutan’s Druk Holding and Investments may have moved nearly $1 billion worth of Bitcoin since mid-2025.

However, the organization denied selling any of its cryptocurrency holdings, stating that no disposals have taken place.