Bitcoin Price Declines Amidst $2.4 Billion in Liquidations

Bitcoin's price has experienced a significant decline, dropping from approximately $85,700 to around $82,500 in early October 2026. This downturn has resulted in over $2.4 billion in liquidations, primarily impacting traders who had taken long positions, betting on further price increases. The sell-off coincided with a broader market downturn characterized by rising bond yields and increased oil prices, alongside notable outflows from Bitcoin exchange-traded funds (ETFs).

Throughout the week, Bitcoin's price fluctuated, reaching intraday lows of about $80,350 before partially recovering to approximately $82,500 by October 9-10. The liquidation events were particularly severe, with individual sessions witnessing between $696 million and over $1.2 billion in positions wiped out, affecting between 100,000 and 180,000 traders. Long positions accounted for roughly 85% to 93% of these liquidations, indicating a strong impact on those betting on price increases.

The overall cryptocurrency market capitalization also suffered, decreasing by around $110 billion within a short span. Contributing factors included a rise in US Treasury yields, which surpassed 5.3%, and oil prices climbing above $101 per barrel. Additionally, negative flows from US spot Bitcoin ETFs reached hundreds of millions of dollars on peak days, further exacerbating the situation. Despite these challenges, the open interest in futures and derivatives remained stable at approximately $150 billion, suggesting that while there was a significant leverage flush, it did not indicate a complete market capitulation.

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Source: KLEA News