Crypto liquidations hit $264M as bitcoin dips below $78K

The liquidation cascade, dominated by long positions, signals that leveraged bullish positioning was caught offside as bitcoin broke a key psychological level. This matters because forced selling can amplify downside moves and reset market structure, potentially deterring aggressive leverage until volatility subsides. The upcoming U.S. inflation data adds a macro layer, as a hot print could pressure risk assets further, while a cool one might stabilize sentiment. Whether bitcoin can hold above $78K and whether short liquidations follow are the open questions, as the market recalibrates to a lower price base.