Bitcoin Falls Below $81K as Liquidations Top $1B
Bitcoin fell below $81,000 on Oct. 8, its first move under that level since mid-September, and hit an intraday low of about $80,350–$80,500. More than $485 million in crypto positions were liquidated in one hour. Over 24 hours, liquidations exceeded $1 billion, with roughly $930 million to $1.05 billion coming from long positions. Ethereum liquidations reached an estimated $294 million to $333 million, while XRP, Solana and Dogecoin also declined. The sell-off came amid a 5.31% 10-year US Treasury yield, Brent crude near $105, US spot Bitcoin ETF outflows and transfers from US government-controlled wallets holding BTC. Elevated open interest, thin liquidity and crowded long positioning amplified the move. The liquidation total was significant but below the record $19 billion event in October 2025.
Bearish
The immediate market signal is bearish. Bitcoin’s break below $81,000 triggered rapid forced selling, and more than $1 billion in positions were liquidated over 24 hours, predominantly longs. Such liquidations can deepen declines as leveraged traders’ positions are closed, particularly when open interest is elevated and liquidity is thin. Weakness across ETH, XRP, SOL and DOGE also points to broad risk aversion rather than an isolated move in Bitcoin. The reported backdrop adds pressure: higher Treasury yields, surging oil prices, spot Bitcoin ETF outflows and transfers from US government-controlled wallets holding BTC. However, the wallet transfers alone do not establish that the coins were sold, and the article gives varying estimates for both transfer amounts and liquidation totals. In the short term, traders may remain cautious and watch whether Bitcoin can reclaim $81,000, along with ETF flows, funding rates, open interest and liquidity. As in previous leverage flushes, forced selling can eventually reduce crowded positions and make a rebound possible, but it does not guarantee one. Over the longer term, the event’s significance will depend on whether macroeconomic pressure and outflows persist; a single liquidation episode is not enough to establish a lasting trend. The move was large, but far smaller than the $19 billion liquidation event in October 2025.