NEW YORK bitcoin slides as rate fears spark liquidations
PUBLISHED May 16, 2026, 6:29 AM ET
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NEW YORK — Bitcoin (BTC) fell about 3.2% over 24 hours to trade near $78,000 on Saturday, May 16, 2026, as rising concerns over renewed U.S. interest rate hikes triggered a sharp deleveraging across crypto derivatives markets and undermined recent bullish sentiment. Data from Investing.com and Coinglass showed that more than $550 million in leveraged long positions were forcibly liquidated across major platforms after automated risk systems closed out over‑leveraged bullish bets. Bitcoin led the losses, with about $189 million in positions wiped out, while ether (ETH) saw roughly $151 million in forced liquidations, highlighting the scale of the derivatives washout. The largest single forced liquidation occurred on the Bitget exchange, where a BTC/USDT position worth $21.59 million was automatically closed. The selloff spilled into the wider digital asset market, with altcoins such as Solana (SOL), BNB and Cardano (ADA) posting steep declines alongside an 8% slide in political memecoins like $TRUMP. Analysts linked the move to sticky U.S. inflation data that pushed 10‑year Treasury yields above 4.5% and reduced expectations for near‑term Federal Reserve rate cuts, prompting investors to shift out of speculative crypto holdings amid broader risk‑off trading.
By Daniel Hayes | JQJO News
Timeline of Events
- Recent weeks Bitcoin builds strong bullish momentum
- Earlier this week Sticky U.S. inflation data released
- Earlier this week Markets discount near-term Fed cuts
- Earlier this week Ten-year Treasury yield tops 4.5%
- Friday Traders increasingly price potential rate hike
- Saturday Bitcoin drops roughly 3.2 percent
- Saturday Over $550 million crypto longs liquidated
- Saturday Largest $21.59 million Bitget position closed
News Intelligence
- If you're invested in Bitcoin or other cryptocurrencies, this drop could impact your portfolio. Keep an eye on U.S. interest rates and inflation data. They can affect crypto markets. Consider diversifying your investments to manage risk.
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