Bitcoin Whipsaws as Crypto Liquidations Near $1 Billion — SkimNews
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- Bitcoin fell below $80,000 on Thursday for the first time in over a month, dropping as low as $79,711 before recovering to roughly $82,000, with a 2.6% daily decline breaking key $81,603 support from its August-to-October rally.
- Crypto liquidations totaled $948.22 million across 177,440 traders in 24 hours per CoinGlass, with long positions accounting for 90.6% ($858.96 million); Ethereum led at $282.03 million while Bitcoin saw over $200 million liquidated.
- Inflation data was the trigger — September CPI came in at 3.7% year-over-year versus 3.6% expected, with core at 2.6% against 2.5%, followed by Thursday's PPI at 6.3% annual versus a 5.5% forecast.
- Oil prices near $104 a barrel — roughly 70% above a year ago amid the U.S.–Iran war — are driving much of the inflation pressure that feeds fuel, shipping, and transport costs across the economy.
- Spot ETF holders are back underwater, with Bitcoin now trading roughly 2% below the average cost basis of U.S. spot ETF buyers near $82,300, after closing above that line on 21 of 24 days since September 21.
- Nexo analyst Iliya Kalchev framed the selloff as a broad risk exit rather than a Fed story, noting stocks and copper fell, gold rose, and South Korea's Kospi dropped about 8%, while flagging $80,000 as Glassnode's key level to watch.
- Key upcoming catalysts include the Fed's rate decision on October 28, core PCE inflation data October 29, and October payrolls November 6, with Kalchev stating a 'Fed path that stops at one 25 basis point hike would take some pressure off.'
Why it matters: With 90.6% of liquidated positions being longs, leveraged crypto traders betting on continued upside got crushed as inflation data reopened the door to further Fed tightening — ETF holders who sat comfortably above their cost basis for weeks are now underwater, and the $80,000 level is the line that determines whether this becomes a deeper correction toward $75,000 or a buying opportunity.
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