Key Points
Key Points
- Bitcoin traded near $83,000 on October 12 after falling from $85,700
- Over $2.4 billion in leveraged positions were liquidated; ETFs saw $681M outflows
- US inflation data on October 14 is the next big test for the market
On This Page
Bitcoin is trying to find stable ground near $83,000. The price fell from $85,700 to about $82,500 this week, wiping out over $2.4 billion in leveraged crypto positions. Most of the losses hit traders betting on price rises.
What Caused the Drop
Rising US Treasury yields, which passed 5.3%, put pressure on risk assets. US spot Bitcoin ETFs saw $681 million in outflows, ending a three-week inflow streak. On October 7 alone, outflows reached about $484.9 million.
The sell-off forced 100,000 to 180,000 traders to close positions in single sessions. Short-term holders sent 55,600 BTC to exchanges at a loss, showing a leverage flush rather than full panic.
Signs of Recovery
There are positive signs too. On October 9, US spot Bitcoin ETFs recorded $21.1 million in net inflows, led by BlackRock’s IBIT. Whales reportedly bought about 15,000 BTC in 72 hours.
Leverage in the market is now much lower than before last year’s October 10 crash, when $19 billion was liquidated. Lower leverage means less risk of another cascade.
Altcoins Fell Harder
Bitcoin showed relative strength, but major altcoins suffered deeper weekly losses. Ethereum traded near $2,535, down about 7.3% on the week. Solana fell to about $111, down nearly 9.9%.
The total crypto market value dropped roughly $110 billion in 36 hours at the worst point. Of the 50 largest crypto assets, 38 were still rising on October 11, suggesting the selling may be slowing.
What Traders Watch Next
Support sits near $80,500, with resistance at $85,000. The big test comes on October 14, when the US releases inflation data. The report could move expectations for interest rates and push Bitcoin sharply in either direction.
For now, the market looks like it is stabilizing, but the correction may not be fully over.
The Bottom Line
Bitcoin survived a $2.4 billion leverage wipeout and is holding near $83,000. Whale buying and returning ETF inflows are encouraging signs.
But with inflation data due on October 14 and yields still high, traders should expect more swings. The $85,000 level is the line to watch for a real recovery. Until then, experts advise caution with leverage, since sudden moves in either direction remain possible. Long-term holders seem unfazed, with corporate Bitcoin holdings up 193,000 BTC this year according to market data. Analysts note that Bitcoin has now closed another week above key long-term moving averages, a sign buyers remain in control.
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