More than $1 billion in crypto positions were liquidated in 24 hours as Bitcoin slid to $80,350. Short-term holders sent 55,600 BTC to exchanges at a loss, while US government transfers to Coinbase Prime and a weekly spot Bitcoin ETF outflow added to the pressure.
Bitcoin was set to snap a three-week gaining streak this week. The asset slid to $80,350, triggering more than $1 billion in crypto liquidations over 24 hours. Long positions alone accounted for $1.05 billion of the $1.09 billion total, the largest daily tally since Aug. 21. Bitcoin later recovered to trade around $82,607.7, down 0.8% on the day and set to lose about 2.8% this week.
Short-term holders rush to exit
Onchain analytics platform CryptoQuant reported that short-term holders sent 55,600 BTC to exchanges at a loss on Thursday, more than during the June sell-off below $60,000. Analyst Amr Taha noted Bitcoin traded above $81,000 this time, a price difference exceeding 36% compared with June's $59,300 level. Historically, this kind of loss-driven selling can exhaust weaker holders and set up a recovery, the CryptoQuant report said.
Trader Rekt Capital flagged $82,500 as the decisive level for the weekly close. According to Rekt Capital's Thursday post: "Bitcoin is currently failing its retest of ~$82500." A weekly close below that level would send Bitcoin back into what he calls its macro accumulation range.
US government transfers add to the slide
The drop began Wednesday, when Bitcoin's price fell $2,000 within 20 minutes after on-chain trackers spotted US government wallets moving holdings toward Coinbase Prime. Over the following three days, the government deposited roughly $1.5 billion in Bitcoin and $62 million in WBTC into Coinbase Prime, with Lookonchain noting Bitcoin's price fell 6.9% during that window. Miner MARA Holdings added to the pressure, seemingly disposing of 996 BTC worth more than $81 million on Oct. 8.
ETF outflows and rate-hike bets weigh
Spot Bitcoin ETFs are heading for their first weekly outflow in four, at over $700 million, according to SoSoValue data. Rising yields and growing confidence that the Federal Reserve will hike interest rates at least once more before year-end have also dented appetite for crypto. Ether fell 2.4% to $2,505.21, down over 7% this week, while Solana and Cardano fell 4.1% and 6.5%, respectively.
Sources: Cointelegraph.com News, CryptoPotato, Cryptocurrency News
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