Bitcoin continued its downward trajectory over the weekend, slipping below $80,000 and triggering significant liquidations across the cryptocurrency market. In volatile Saturday trading, Bitcoin touched intraday lows between $79,146 and $79,263 before fluctuating back toward $80,300.
Bitcoin liquidation surge reflects market stress
According to CoinGlass, Bitcoin liquidations reached $239.65 million over a 24-hour period. Long positions accounted for $234 million of this total, representing more than 93% of liquidations, while short positions were responsible for just $16.65 million. Across all cryptocurrencies, liquidations soared to $727.78 million across 196,033 traders. Longs represented $686.93 million, or almost 84% of the forced closures, as traders had overwhelmingly positioned for price gains before Bitcoin’s decline through the upper $81,000 zone.
Bitcoin also slipped below its 50-day simple moving average, a level that had held near $81,700 for nearly two months. Immediate support levels are now being watched near $78,400 and $77,876, with a broader support region stretching from $76,700 to $72,500. The $75,000 level now stands as a critical potential floor as volatility persists.
More than 93% of Bitcoin liquidations were long positions, as traders anticipated gains before the decline accelerated below $81,000. Forced closures subsequently increased selling pressure and contributed to the move lower.
Mini dictionary: CoinGlass is a platform that tracks crypto liquidations, open interest, and other derivatives market data in real time, providing valuable insights for traders and analysts.
ETF flows added to the pressure as US spot Bitcoin exchange-traded funds experienced notable outflows. On Thursday, these funds lost $635.5 million—the largest single-day withdrawal since June 25. BlackRock’s IBIT saw $254.1 million pulled from its fund, while Fidelity’s FBTC reported $217.5 million in outflows. On Friday, ETFs lost an additional $137.9 million, following three straight sessions with inflows above $1 billion each, including $528.4 million on Monday. These figures have raised questions over short-term investor appetite for Bitcoin exposure through regulated products.
| ETF Provider | Thursday Outflow | Friday Outflow |
|---|---|---|
| BlackRock IBIT | $254.1 million | N/A |
| Fidelity FBTC | $217.5 million | N/A |
| All US BTC ETFs | $635.5 million | $137.9 million |
The ETF outflows occurred as shares could not be traded over the weekend. Investors in these products must wait until Monday to buy or sell, unlike Bitcoin, which trades around the clock.
Institutional concerns and macro pressures
The broader risk environment also weighed on sentiment, with US technology stocks sharply lower and energy prices higher ahead of the Federal Reserve’s next policy meeting. The Nasdaq Composite dropped 2.6% on Thursday, marking its steepest loss since early June. At the same time, Brent crude oil surged past $117 amid tensions in the Middle East, intensifying inflation worries as the Fed prepares to meet on October 27-28.
Arthur Hayes, co-founder and former CEO of crypto exchange BitMEX, said he recently closed the directional portfolio of his investment fund Maelstrom and realized profits on ETH, ENA, and UNI trades, citing macroeconomic and geopolitical uncertainty.
Mini dictionary: Maelstrom is an investment company founded by Arthur Hayes focused on blockchain and decentralized finance opportunities, primarily through directional and venture strategies targeting emerging digital assets.
Schiff warns of $75K test, ETF investors unable to react
Peter Schiff, chief executive and chief global strategist at Euro Pacific Capital, commented that Bitcoin has broken support and identified $75,000 as the next critical level. As a longtime critic of Bitcoin, Schiff said that if prices drop below $75,000, ETF investors could face significant challenges, especially given they cannot sell over the weekend.
Schiff has stressed that Bitcoin trades continuously, but ETF shares are only available during market hours. This disconnect means ETF holders are unable to respond during sudden weekend drops until US markets reopen.
Schiff also stated that a drop to $75,000 could put the institutional investor Strategy’s average Bitcoin purchase price of $73,981 at risk of being breached. The company currently holds over 640,000 BTC, with its average cost basis leaving a modest buffer at current prices. He further warned that Strategy’s share premium could turn into a discount and criticized the company’s share dilution practices.
As markets await the outcome of the Federal Reserve’s policy decision, traders are closely watching if Bitcoin can reclaim the $80,000 mark. If the cryptocurrency fails to hold support, key levels at $77,876 and $72,500 remain in focus over the coming sessions.
