Bitcoin slipped below $84,000 late Tuesday, triggering widespread liquidations among traders who had placed leveraged long positions. Data from US-based crypto exchange Coinbase indicated bitcoin declined from approximately $85,300 shortly before 9:50 p.m. ET to a session low near $83,550 by 10:05 p.m. ET. By 11:20 p.m. ET, bitcoin was trading around $84,000, down 1.7% over the past 24 hours. The second-largest cryptocurrency, ether, also dropped around 3.4% to about $2,610.
Large liquidations and trading activity surge
Lookonchain, an onchain analytics platform, highlighted notable activity on Hyperliquid, a decentralized derivatives exchange. According to their analysis, four newly created wallets each deposited 1 million USDC onto Hyperliquid and initiated 40x leveraged short positions, collectively totaling 148.49 BTC, worth roughly $12.5 million at the time. Public trading data confirmed that these shorts were opened between 8:04 p.m. and 8:17 p.m. ET at an average entry price of about $85,500.
Mini dictionary: Hyperliquid is a decentralized cryptocurrency derivatives exchange that allows traders to open leveraged positions without relying on a central third party. It facilitates trading multiple crypto assets using smart contracts and onchain liquidity, aiming to offer a more transparent trading environment.
Over the past 24 hours, forced liquidations across the crypto market reached $555.6 million, according to data from analytics firm CoinGlass. Of this total, $487.2 million represented long positions, indicating that most losses were recorded as prices fell. Analysts noted that available public data might underestimate the true scale of liquidations.
| Asset | 24h Price Change | Latest Price | Liquidation Amount |
|---|---|---|---|
| Bitcoin | -1.7% | $84,000 | Part of $555.6 million total |
| Ether | -3.4% | $2,610 | Included in total liquidations |
Analysts weigh in on the pullback
Dominick John, an analyst at digital asset research firm Zeus Research, said current market conditions point to significant profit-taking alongside forced long liquidations. He attributed the outsized move to a build-up in open interest and higher funding rates, which left the market exposed to rapid deleveraging.
John explained that the sharp decline was primarily the result of profit-taking and forced liquidations after heightened open interest and funding rates made conditions favorable for a sell-off.
Market sentiment showed signs of cooling. The Crypto Fear & Greed Index—an indicator tracking investor sentiment—registered at 62, with a “greed” label, down from 67 the previous day.
Key support and recent momentum
Jeff Ko, chief analyst at ViaBTC, suggested that the selloff might ultimately be positive for the market if bitcoin manages to hold the $82,000 to $83,000 range. Ko pointed to bitcoin’s approximately 40% gain in the third quarter and noted that the new spot bitcoin exchange-traded funds have attracted $6.5 billion in inflows, supporting a longer-term bullish outlook.
Ko stated that the correction could be healthy for the market, provided bitcoin holds above key support zones, while recent ETF inflows demonstrate continued institutional interest.
