Bitcoin Slips Towards $80K as Hawkish Fed Sparks Liquidations
Bitcoin fell about 3.27% over the week, sliding from a high of $86,974 to $80,329, as hawkish Federal Reserve minutes and rising Treasury yields pressured crypto markets. The Fed minutes indicated that most officials saw another rate rise before year-end as appropriate. The 10-year Treasury yield reached 5.36%, its highest level since 2002.
The sell-off triggered more than $1.1 billion in crypto liquidations in 24 hours, including about $1.05 billion in long positions. Bitcoin and Ethereum funds recorded roughly $1.22 billion in combined outflows, while Solana ETFs ended a 14-week inflow streak. Bitcoin held near $80,000, and the Fear & Greed Index did not enter fear territory, suggesting a leverage flush rather than broad panic.
Ledger also warned that a hardware wallet sold by Southeast Asian reseller CryptoBilis contained an unauthorised implant. On-chain researchers estimate the resulting losses exceeded $93 million. Ledger urged affected customers to transfer funds to a new device purchased directly from the company and use a fresh recovery phrase.
Other developments included Strategy’s purchase of 250 BTC, bringing its holdings to 848,250 BTC, and Securitize’s launch of tokenised US stocks on Solana. For traders, the Fed’s rate outlook, September inflation data, ETF flows and Bitcoin’s ability to hold $80,000 remain key market signals.
Bearish
The near-term balance of risks is bearish. The Fed minutes pointed to the possibility of another rate rise, while the 10-year Treasury yield reached a level not seen since 2002. Higher yields and expectations of tighter monetary policy can make risk assets less attractive and reduce liquidity available for crypto markets. Brent crude near $106 a barrel adds another inflation risk that could keep rates higher for longer.
Market data reflected that pressure: Bitcoin fell from nearly $87,000 to $80,329, major crypto assets also declined, and more than $1.1 billion in leveraged positions were liquidated. Long positions accounted for most of the liquidations, while Bitcoin and Ethereum funds saw heavy outflows. Similar hawkish-policy episodes have often produced sharp, volatile sell-offs as traders reduce leverage and reassess rate expectations; ETF outflows can reinforce that pressure in the short term.
There are, however, signs against interpreting this as a full market breakdown. Bitcoin held around $80,000, a level described in the article as close to the average cost basis of ETF holders, and sentiment did not fall into the Fear & Greed Index’s fear zone. The scale of long liquidations suggests forced deleveraging was a major driver, which can ease once crowded positions are cleared. Strategy’s continued Bitcoin purchase also indicates some institutional demand, although its 250 BTC addition was small relative to its holdings.
In the short term, traders are likely to focus on September CPI, the Fed’s December meeting, Treasury yields, ETF flows and whether Bitcoin can defend $80,000. A break below that level could invite further selling, while stable yields and renewed inflows may support a recovery. Longer term, the article does not establish a change in Bitcoin’s underlying adoption outlook, but sustained high rates and continued fund outflows would remain headwinds. The Ledger wallet incident is a separate security concern that may prompt users to scrutinise custody practices, rather than directly determining broad market direction.