Bitcoin Plunges Below $81,000 as Liquidations Top $480 Million in an Hour

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Bitcoin Plunges Below $81,000 as Liquidations Top $480 Million in an Hour
PrimeXBT Editorial Team
Reviewed by PrimeXBT

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Bitcoin dropped below $81,000 for the first time since September 21, and liquidations topped $480 million in a single hour. The slide coincided with a fresh Bitcoin transfer from US government holdings, while Ethereum, XRP, and other major coins fell alongside it.

Bitcoin dumped below $81,000 in the past hour, a level it had not touched since September 21, when it broke out. More than $480 million in positions were liquidated in that single hour, as expected, the majority from long positions.

A second government transfer deepens the slide

The drop built on a rough stretch that started a day earlier. CryptoPotato had reported that Bitcoin crashed $2,000 within 20 minutes after the US government moved a portion of its crypto holdings to Coinbase Prime, a move that briefly pushed the coin below $84,000 before it held near that level for hours.

Today's leg down coincided with another Bitcoin transfer from the US government, according to data from Lookonchain.

Ethereum and XRP fall alongside Bitcoin

Altcoins followed Bitcoin lower. Ethereum, which traded above $2,700 as recently as 48 hours ago, slid to $2,450, while XRP was rejected at $1.50 and dumped to $1.34.

Notable losses also came from Solana and Dogecoin, among other major tokens.

A mixed geopolitical and macro backdrop

Elsewhere, Bitcoin had rebounded above $81,000 after President Trump said the US will not strike Iran before the November 3 midterm elections, a statement that also pulled oil prices back. Prediction market Polymarket now gives a 60% chance that the ceasefire holds through mid-November.

The session's volatility also followed a rough week for Bitcoin funds: spot Bitcoin ETFs shed $484.9 million on October 7, their worst day since June, according to Decrypt, with 87.5% of the day's liquidations coming from long positions. Minutes from the Federal Reserve's latest meeting showed most officials still expect another rate hike before year end.

Sources: CryptoPotato, CoinGape, Decrypt

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