Bitcoin Drops Below $80,000 as Liquidations Near $1 Billion
Bitcoin briefly fell below $80,000 for the first time in more than a month as hotter-than-expected US inflation data renewed concerns about interest rates. It later rebounded to around $82,000, but remained volatile.
Crypto liquidations reached $948.22 million in 24 hours, affecting 177,440 traders. Long positions accounted for $858.96 million, or 90.6% of the total. Ethereum saw $282.03 million in liquidations, while Bitcoin recorded more than $200 million. The scale of forced selling added pressure to an already broad market decline.
Bitcoin also slipped about 2% below the average purchase price of US spot Bitcoin ETF holders, near $82,300. Analyst Iliya Kalchev said reclaiming that level would be an early test of a recovery. On the charts, $80,286 is a key support level; a sustained break below it could expose support near $78,002 and $75,092. A daily close above $81,603 could open a move towards $84,245.
The selloff followed September consumer inflation of 3.7% year over year, above forecasts, and producer inflation of 6.3%, compared with a 5.5% estimate. Higher inflation can strengthen expectations of rate hikes, supporting bond yields and the dollar while reducing appetite for risk assets such as Bitcoin. Kalchev said a lasting rebound would likely need consistent ETF inflows, easing long-term-holder selling and a less restrictive Federal Reserve outlook.
Bearish
The immediate market signal is bearish. Bitcoin fell below $80,000, while nearly $949 million in crypto positions were liquidated and more than 90% of those losses came from longs. Forced selling can amplify declines as falling prices trigger further liquidations. Bitcoin’s move below the roughly $82,300 average cost of US spot ETF holders may also weaken sentiment among recent buyers.
The macroeconomic backdrop adds pressure: consumer and producer inflation both exceeded forecasts, raising the possibility that the Federal Reserve could keep rates higher or tighten policy further. In similar inflation-driven episodes, higher expected rates and stronger demand for safer assets have often weighed on crypto and other risk-sensitive markets. The article also describes a broad retreat from risk assets, rather than a crypto-only move.
In the short term, traders are likely to watch support near $80,286 and the $78,002–$75,092 area below it. A daily close above $81,603, followed by a recovery beyond the ETF-holder cost basis near $82,300, could ease selling pressure, but would not by itself confirm a durable reversal. Liquidation-driven volatility may remain elevated.
Longer term, the outlook depends on whether inflation and the Fed’s rate path become less restrictive, and whether ETF flows turn consistently positive. Reduced long-term-holder selling and buying that is supported by sustained demand would strengthen the case for recovery. Until those conditions improve, the risk of renewed downside remains, although a rapid rebound is possible if support holds and macro expectations stabilize.